Exam 2: Thinking Like an Economist

For economists,substitutes for laboratory experiments often come in the form of

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s)?

In the circular-flow diagram,firms consume all the goods and services that they produce.

Figure 2-7 -Refer to Figure 2-7.For this economy,as more and more books are produced,the opportunity cost of an additional book produced,in terms of ribeye steaks,

When two variables have a negative correlation,

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Historical episodes allow economists to illustrate and evaluate economic theories of the present.

Microeconomics is the study of

Assumptions can simplify the complex world and make it easier to understand.

Production possibilities frontiers can be used to illustrate scarcity,trade-offs,opportunity cost,efficiency,unemployment,technological advances,and economic growth.

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

The nation's antitrust laws are enforced by economists at the Department of

Figure 2-2 -Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

The art in scientific thinking is

Figure 2-13 -Refer to Figure 2-10.The slope of the curve between points A and B is

Economists make assumptions in order to

When a production possibilities frontier is bowed outward,the opportunity cost of the first good in terms of the second good increases as more of the second good is produced.

The most common data for testing economic theories come from

Which of the following is an example of a positive,as opposed to normative,statement?

The production possibilities frontier provides an illustration of the principle that