Exam 2: Thinking Like an Economist

When economists make

In the circular-flow diagram,

Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed. Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik

Use the following Table to answer the question : Table 2-4 : Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Which of the following statements applies to economics, as well as to other sciences such as physics?

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. As the economy moves from point A to point D, is the opportunity cost of cars increasing, constant, or decreasing?

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point M to point L?

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

One difference between a hypothetical benevolent king implementing the best policy and the president implementing the best policy in the real world is the president has to be concerned about

The point where both x and y are zero is known as the

Use the following Table to answer the question : Table 2-5 -Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels?

Economists at which administrative department help formulate spending plans and regulatory policies?

When two variables have a negative correlation,