Exam 2: Thinking Like an Economist

What can good assumptions do?

In order to provide information on two variables,what must an economist use?

What have economists often observed while studying the effects of public policy changes?

What does a relatively steep demand curve mean?

When is an economic outcome said to be efficient?

How is the slope of a line calculated?

Figure 2-4 -Refer to Figure 2-4.What is the opportunity cost in terms of toothbrushes of getting 10 additional toasters by moving from point B to point A?

If an economist develops a theory about international trade based on the assumption that there are only two countries and two goods,what is most likely?

What is a characteristic of the circular-flow model?

What type of statement is "When the price of gasoline goes up,more people choose to take public transit"?

Figure 2-1 -Refer to Figure 2-1.Which arrow shows the flow of income payments?

An economy is being efficient if it is impossible to produce more of one good without producing less of another.

Figure 2-8 -Refer to Figure 2-8.Which combination is NOT possible for this economy to produce?

If Jake chooses to buy fewer pizzas per month at each price,what will happen to his demand curve?

Figure 2-8 -Refer to Figure 2-8.What would be an efficient combination of bathtubs and barrels?

Figure 2-5 -Refer to Figure 2-5.What most likely caused the shift of the production possibilities frontier from A to B?

Table 2-1 ​Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 0 to 200?

What happens when scientists make good assumptions?

Figure 2-9 -Refer to Figure 2-9.What is this type of graph known as?

Economic growth causes a production possibilities frontier to shift outward.