Exam 2: Thinking Like an Economist: Part A

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels),or a combination of the two. -Refer to Figure 2-14.Which point(s)on the graph show unemployment of resources?

Figure 2-3 -Refer to Figure 2-3.What do the outer arrows represent in the figure?

What you must give up to get something else is called the

As a substitute for laboratory experiments,economists use evidence available through history's

What type of statement is a descriptive statement about how the world is?

Just like other scientific models,economic models simplify reality using

In the circular flow diagram,when Brian provides labor through the markets for factors of production to ABC Company,the flow of money he receives in exchange is called

Figure 2-22 -Refer to Figure 2-22.Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Figure 2-3 -Refer to Figure 2-3.What does the arrow going from oval A to rectangle 2 represent in the figure?

Figure 2-3 -Refer to Figure 2-3.What do the ovals represent in the figure?

The institution that sets the nation's monetary policy is called the

Figure 2-22 -Refer to Figure 2-22.Given that price is measured on the vertical axis,quantity is measured on the horizontal axis,and that the curves are downward-sloping,what type of curves are depicted here?

Since 1946,the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

When economists disagree about whether the government should tax a household's income or its consumption,they are expressing a difference in

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters,apples (in bushels),or a combination of the two. -Refer to Figure 2-14.Which point(s)on the graph is(are)efficient production possibilities?

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

When economists disagree about whether a policy is fair,they are expressing a difference in

In the circular flow diagram,who owns the factors of production and consumes all of the goods and services produced?

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Figure 2-3 -Refer to Figure 2-3.What is the name of the model depicted in the figure?