Exam 2: Thinking Like an Economist

What markets are depicted in the simple circular-flow diagram?

Figure 2-1 -Refer to Figure 2-1.Which arrow shows the flow of the factors of production?

On a production possibilities frontier,when is production efficient?

What does it mean if an economy is producing efficiently?

Why are graphs such as bar graphs limited?

What would a macroeconomist NOT study?

Figure 2-2 -Refer to Figure 2-2.What do boxes A and B represent?

What do good economic models do?

Which statement best describes economic models?

Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost to society of the movement from point A to point C?

In the goods and services market,how do households and firms interact?

Economists outside the government also offer policy advice.Which institution does NOT publish reports by economists?

What does the art of scientific thinking include?

Who designs tax policy?

In the factors of production market,how do households and firms interact?

What did John Maynard Keynes believe the ideas of economists to be?

How do economists view normative statements?

What happens when a variable on an axis of a graph changes?

The country of Econoland produces two goods:textbooks and widgets.Last year,it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same)production possibilities frontier.Which statement best explains the change?

What is a duty of Human Resources Canada?