Exam 2: Thinking Like an Economist

Another term for factors of production is

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

The argument that purchases of minivans cause large families is an example of

Economists make assumptions to

Use the following Figure to answer the question : Figure 2-19 : In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour. Commuter Rail Passengers by Frequency of Service -Refer to Figure 2-19. Which of the following conclusions should not be drawn from observing this graph?

Among economic models, the circular-flow diagram is unusual in that it

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

You know an economist has crossed the line from scientist to policy adviser when he or she

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) and Panel b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel a) to Panel b)?

In the circular-flow diagram, factors of production include land, labor, and capital.

Use the following Table to answer the question : Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

The two loops in the circular-flow diagram represent

Positive statements are descriptive, while normative statements are prescriptive.

An ordered pair is

Economic models are most often composed of diagrams and equations.

The x-coordinate is the

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

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?

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 bowed outward shape of the production possibilities curve indicates that opportunity cost of apples in terms of sweaters is

Which markets are represented in the simple circular-flow diagram?