Exam 2: Thinking Like an Economist

Which of the following is not correct about most economic models?

The first number in any ordered pair is

A statement describing how the world is

Use the following Figure to answer the question : Figure 2-8 : -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Use the following Figure to answer the question : Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Use the following Figure to answer the question : 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?

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 1050 units of food and 47 machines. Which of the following statements is correct?

"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

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. If this society is producing at point T,

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

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Normative statements are

What type of statement is a prescriptive statement about how the world ought to be?

Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?