Exam 2: Thinking Like an Economist

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of

Between the two ordered pairs (3, 6) and (7, 18), the slope is

Points outside the production possibilities frontier represent infeasible levels of production.

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

Figure 2-23 -Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Economic models

In the circular-flow diagram, another name for goods and services produced by firms is

Policymaking in a representative democracy

Which of the following statements about the circular-flow diagram is correct?

Which of the following is correct?

Which of the following is not correct?

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

In principle, we can

The circular-flow diagram is a

A macroeconomist - as opposed to a microeconomist - might study the effect of

An example of a price that changes only infrequently is the price of