Exam 2: Thinking Like an Economist: The Economist As Scientist

Figure 2-5 -Refer to Figure 2-5.Inefficient production is represented by which point(s)?

Albert Einstein once made the following observation about science:

Which of the following is not an assumption of the productions possibilities frontier?

Suppose an economist develops a theory that higher food prices arise from higher gas prices.According to the scientific method,which of the following is the economist's next step?

Economists believe that production possibilities frontiers are often bowed because

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

In the simple circular flow diagram,the flow of money from the markets for goods and services to the firms is called

When a production possibilities frontier is bowed outward,the opportunity cost of producing an additional unit of a good

Figure 2-16​ -Refer to Figure 2-16.Which of the following statements is true about the opportunity cost of obtaining approximately 20 additional gadgets by moving from point B to point C?

The scientific method is applicable to studying

When an economy is operating inside its production possibilities frontier,we know that

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

When an economy is operating at a point on its production possibilities frontier,then

Economic models

Economic models

Figure 2-11 -Refer to Figure 2-11.Which of the following events would explain the shift of the production possibilities frontier from A to B?

Figure 2-5 -Refer to Figure 2-5.The opportunity cost of this economy moving from point A to point B is

Which of these statements about economic models is correct?

In the simple circular-flow diagram,the participants in the economy are

The goal of an economist who formulates new theories is to