Exam 2: Thinking Like an Economist

Figure 2-23 -Refer to Figure 2-23. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

A production possibilities frontier can shift outward if

Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

Figure 2-5 -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

According to John Maynard Keynes, an economist must possess a rare combination of skills including being a mathematician, historian, statesman, and philosopher.

In the markets for goods and services in the circular flow diagram, households act as

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

An economic outcome is said to be efficient if the economy is

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

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Economists speaking like policy advisers make

Which of the following statements is (are) correct?

When studying the effects of changes in public policy, economists believe that

Economic models are most often composed of diagrams and equations.

The Council of Economic Advisers

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. If this society moves from point U to point V,

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

Economists view normative statements as

Economists view positive statements as