Exam 2: Thinking Like an Economist

In the circular-flow diagram,which of the following is not a factor of production?

Which of the following is not correct about most economic models?

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

The goal of an economist who formulates new theories is to

Figure 2-14 -Refer to Figure 2-14.It is possible for this economy to produce 45 doghouses and 30 dishwashers.

Economic models can help us understand reality only when they include all details of the economy.

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Sometimes economists disagree because their scientific judgments differ.Which of the following instances best reflects this source of disagreement?

The scientific method is applicable to studying

In the circular-flow diagram,households and firms are the decision makers.

In the ordered pair (10,30),10 is the y-coordinate and 30 is the z-coordinate.

The slope of a horizontal line is infinite,and the slope of a vertical line is zero.

In the circular-flow diagram,firms produce

Figure 2-4 -Refer to Figure 2-4.If this economy devotes all of its resources to the production of toothbrushes,then it will produce

The second number in any ordered pair is

A production possibilities frontier shifts outward when

Figure 2-3 -Refer to Figure 2-3.This economy cannot produce at which point(s)?

Unemployment would cause an economy to

When an economy is operating inside its production possibilities frontier,we know that

Suppose price is measured along the vertical axis on a graph.When price changes,there will be a