Exam 2: Thinking Like an Economist

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

When an economist evaluates a positive statement, he or she is primarily

Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Which of the following is a correct statement about production possibilities frontiers?

A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

Differences in scientific judgement between economists are similar to all of the following except

Positive statements are

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Figure 2-22 -Refer to Figure 2-22. How are price and quantity related in this graph?

Positive statements can be evaluated using data alone, but normative statements cannot.

Economists at which administrative department help formulate spending plans and regulatory policies?

Figure 2-8 -Refer to Figure 2-8. To reach point L, the economy would have to

If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will

Figure 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

It is difficult for economists to make observations and develop theories, but it is easy for economists to run experiments to generate data to test their theories.

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?

Which of the following is not correct?

If an economy is producing efficiently, then

In the ordered pair (20, 30), 20 is the

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.