Exam 2: Thinking Like an Economist

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

Trade-offs are involved in most policy decisions.

Normative statements are

Which of the following is correct?

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Normative statements are

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Normative conclusions

In the markets for the factors of production in the circular-flow diagram,households are buyers and firms are sellers.

In surveys of professional economists,fourteen propositions were endorsed by an overwhelming majority of respondents.

Evaluating normative statements involves values as well as facts.

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

The point where both x and y are zero is known as the

Figure 2-3 -Refer to Figure 2-3.Unemployment could cause this economy to produce at which point(s)?

Which of the following concepts cannot be illustrated by the production possibilities frontier?

Among economic models,the circular-flow diagram is unusual in that it

When two variables have a negative correlation,

Economists speaking like policy advisers make

The effects of foreign competition on the U.S.textile industry would be studied by a microeconomist rather than a macroeconomist.

Which of these terms are used interchangeably?