Exam 2: Thinking Like an Economist

In the early 19th century, the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic. The villagers noticed that wherever doctors appeared, people died. Therefore, many doctors were chased away from villages, and some were even killed. This reaction to the correlation between doctors and deaths is most likely a problem of

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Economists believe that production possibilities frontiers are often bowed because

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

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Figure 2-4 -Refer to Figure 2-4. Unemployment could cause this economy to produce at which point(s)?

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

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

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

Figure 2-3 -Refer to Figure 2-3. What do the outer arrows represent in the figure?

Macroeconomics is the study of economy-wide phenomena.

In the simple circular-flow diagram,

The slope of a line is equal to

The President receives economic policy advice from economists at each of the following except

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?

Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which point(s)?