Exam 2: Thinking Like an Economist

Economists usually have to make do with whatever data the world happens to give them.

Figure 2-2 -Refer to Figure 2-2.If the owners of land,labor,and capital are represented by Box B of this circular-flow diagram,then

The design of tax policy is one of the responsibilities of economists who work at the

Economists at the U.S.Department of Justice help enforce the nation's antitrust laws.

Suppose a nation is currently producing at a point inside its production possibilities frontier.We know that

You know an economist has crossed the line from scientist to policy adviser when he or she

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

The slope of an upward-sloping line is positive,and the slope of a downward-sloping line is negative.

Figure 2-6 -Refer to Figure 2-6.Inefficient production is represented by which point(s)?

Economists build economic models by

In the circular-flow diagram,

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

When economists make

Figure 2-9 Panel (a)Panel (b) -Refer to Figure 2-9,Panel (a).The movement from point S to point R could be caused by

In the circular-flow diagram,factors of production are the goods and services produced by firms.

Figure 2-2 -Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent

In the circular-flow diagram,one loop represents the flow of goods and services,and the other loop represents the flow of factors of production.

When a production possibilities frontier is bowed outward,the opportunity cost of producing an additional unit of a good

The country of Econoland produces two goods,textbooks and widgets.Last year,it produced 200 textbooks and 500 widgets.This year,it produced 250 textbooks and 600 widgets.Given no other information,which of the following events could not explain this change?

All scientific models,including economic models,simplify reality in order to improve our understanding of it.