Exam 2: Thinking Like an Economist

What does a normative statement describe?

What is revenue received by firms from sales that is not used to pay for factors of production?

Figure 2-4 -Refer to Figure 2-4. What is the opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D?

Figure 2-5 -Refer to Figure 2-5. The shift of the frontier from A to B was most likely caused by which of the following?

Which of the following is NOT true about most economic models?

What does the art of scientific thinking include?

Figure 2-11 -Refer to Figure 2-11. The opportunity cost of more doghouses increases as more doghouses are produced.

In the markets for goods and services, as in the markets for the factors of production, households are buyers and firms are sellers.

Figure 2-10 -Refer to Figure 2-10. How are the price of roses and the quantity of roses related?

Figure 2-2 -Refer to Figure 2-2. Who owns the factors of production?

In the circular-flow diagram, which flows are involved?

Which is the best statement about the roles of economists?

What is a type of graph that can be used to display the relationship between two variables?

Which of the following is NOT true concerning models?

What does a demand curve show?

Which of the following might a microeconomist NOT study?

Why is the use of theory and observation more difficult in economics than in sciences such as physics?

Figure 2-3 -Refer to Figure 2-3. Which point or points are efficient?

Who designs tax policy?

Figure 2-10 -Refer to Figure 2-10. What is the movement from point B to point C?