Exam 2: Thinking Like an Economist

Which of the following statements applies to economics,as well as to other sciences such as physics?

The production possibilities frontier is used to illustrate some basic economic ideas,including

Economists view normative statements as

Which types of models are built with assumptions?

In the markets for factors of production in the circular-flow diagram,

Figure 2-3 -Refer to Figure 2-3.At which point is this economy producing its maximum possible quantity of tubas?

Two variables that have a negative correlation move in opposite directions.

Points inside the production possibilities frontier represent feasible levels of production.

The slope of a fairly flat upward-sloping line will be a

Microeconomics and macroeconomics are closely intertwined.

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

Figure 2-5 -Refer to Figure 2-5.The opportunity cost of this economy moving from point A to point C is

Policies such as rent control and trade barriers persist

Figure 2-9 Panel (a)Panel (b) -Refer to Figure 2-9,Panel (a).In order to gain 2 radios by moving from point S to point T,society must sacrifice

Another term for factors of production is

Positive statements are

In the circular-flow diagram,in the markets for

Figure 2-8 Panel (a)Panel (b) -Refer to Figure 2-8,Panel (a).The opportunity cost of moving from point K to point L is

The x-coordinate is the