Exam 2: Thinking Like an Economist

The Council of Economic Advisers

If an economy is producing efficiently, then

When two variables have a negative correlation and the x-variable decreases,

Use the following Figure to answer the question : Figure 2-16 -Refer to Figure 2-16. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

For an economist, the idea of making assumptions is regarded generally as a

A demand curve shows the relationship between price and

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Policymaking in a representative democracy

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

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. Which points) on the graph show unemployment of resources?

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. If this economy moved from point P to point N, then

The field of economics is traditionally divided into two broad subfields,

Between the two ordered pairs 3, 6) and 7, 18), the slope is

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. What is the opportunity cost of moving from point T to point R?

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What is the x-coordinate of point R?

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. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which points)?

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?