Exam 2: Thinking Like an Economist

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Economists make assumptions to

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production.

To display information on two variables, an economist must use

Economists believe that production possibilities frontiers are often bowed because

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

In addition to advising the president, one duty of the Council of Economic Advisers is to

Use the following Figure to answer the question : Figure 2-16 -Refer to Figure 2-16. The graph shown is known as a

The slope of a line that passes through the points 20, 30) and 40, 14) is

The slope of a steep upward-sloping line will be a

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

If a line passes through the points 20,5) and 10,10), then the slope of the line is -2.

Use the following Figure to answer the question : Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is

Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.

Use the following Table to answer the question : Table 2-1 The following table contains some production possibilities for an economy for a given month. -Refer to Table 2-1. If the production possibilities frontier is bowed outward, then "?" could be

Which of the following is an example of a positive, as opposed to normative, statement?

According to John Maynard Keynes, an economist must possess a rare combination of skills including being a mathematician, historian, statesman, and philosopher.

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

It is possible for an economy to increase its production of both goods if the economy