Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-8 : -Refer to Figure 2-8. Efficient production is represented by which points?

Two variables that have a negative correlation move in opposite directions.

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. Efficient production is represented by which points)?

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) and Panel b). A shift of the economy's production possibilities frontier from Panel a) to Panel b) could be caused by

Which of the following concepts cannot be illustrated by the production possibilities frontier?

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

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

A statement describing how the world should be

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

Economists speaking like policy advisers make

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. Boxes C and D of this circular-flow diagram represent

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 mobile phones from 200 to 500?

In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. It is possible for this economy to produce 45 doghouses and 30 dishwashers.

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

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Points on the production possibilities frontier represent efficient levels of production.

Normative conclusions