Exam 2: Thinking Like an Economist

If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2.

In the markets for the factors of production in the circular-flow diagram,

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

When two variables have a positive correlation,

Economists speaking like scientists make

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

The Federal Reserve

In the simple circular-flow diagram, households

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

The slope of a line is equal to

The opportunity cost of something is what you give up to get it.

Figure 2-7 -Refer to Figure 2-7. This economy cannot produce at which point(s)?

On a bowed production possibilities frontier, as you move down along the curve

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point F is

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.