Exam 2: Thinking Like an Economist

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

In the ordered pair 10,30), 10 is the horizontal location of the point and 30 is the vertical location of the point.

Which of the following is not correct?

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). Production is

The x-coordinate of an ordered pair specifies the

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Almost all economists agree that local and state governments should

A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Use the following Figure to answer the question Figure:2-3 -Refer to Figure 2-3. Which shape refers to the markets for goods and services?

If a major union goes on strike, then the country would be operating inside its production possibilities frontier.

A pie chart is a way to display information regarding two variables.

Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

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?

The production possibilities frontier illustrates

Almost all economists agree that tariffs and import quotas

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

Economists work both inside and outside the administrative branch of the U.S. government.

Use the following Figure to answer the question : 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. The opportunity cost of moving from point U to point R is

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.