Exam 2: Thinking Like an Economist

How did the influential economist John Maynard Keynes explain his remark that although economics is an easy subject compared with the higher branches of philosophy or pure science,it is a subject at which few excel?

In addition to advising the president,one duty of the Council of Economic Advisors is to

The following table contains some production possibilities for an economy for a given year: If the production possibilities frontier is bowed outward,then "?" could be

Figure 2-13 -Refer to Figure 2-13.The movement from point B to point C could have been caused by

The circular-flow diagram explains,in general terms,how the economy is organized and how participants in the economy interact with one another.

Economists speaking like policy advisers make

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

Figure 2-14 -Refer to Figure 2-14.If this economy uses all its resources in the dishwasher industry,it produces 35 dishwashers and no doghouses.

Economists at the Department of the Treasury

Figure 2-8 Panel (a)Panel (b) -Refer to Figure 2-8,Panel (a).In order to gain 2 donuts by moving from point L to point M,society must sacrifice

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 200 to 300?

Because it is difficult for economists to use experiments to generate data,they generally must

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Normative statements are not

Economists face an obstacle that many other scientists do not face.What is that obstacle?

Figure 2-7 -Refer to Figure 2-7.Which point on the graph best represents the fact that,because resources are scarce,not every conceivable outcome is feasible?

Figure 2-9 Panel (a)Panel (b) -Refer to Figure 2-9,Panel (a).The opportunity cost of one television is highest when the economy produces

The bowed shape of the production possibilities frontier can be explained by the fact that

Figure 2-9 Panel (a)Panel (b) -Refer to Figure 2-9,Panel (a).Production at point R is

In the ordered pair (17,75),17 is the