Exam 2: Thinking Like an Economist

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Raymond buys a refrigerator for his new home. To which of the arrows does this transaction directly contribute?

In the ordered pair 20, 30), 20 is the

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). A shift of the economy's production possibilities frontier from Panel a) to Panel b) could be caused by

Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

Economists speaking like scientists make

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

Use the following Figure to answer the question : Figure 2-3 : -Refer to Figure 2-3. What is the name of the model depicted in the figure?

Economists try to address their subject with a scientist's objectivity.

In the simple circular-flow diagram, who buys the factors of production?

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Use the following Table to answer the question : Table 2-3 : Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

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

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Trade-offs are involved in most policy decisions.

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

In the circular-flow diagram,

When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced.

The art in scientific thinking -- whether in chemistry, economics, or biology -- is