Exam 2: Thinking Like an Economist

Instead of conducting laboratory experiments to generate data to test their theories, economists often

The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

Economists build economic models by

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 F is

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

The language of economics is

The President counts among his economic advisors the Congressional Budget Office.

Use the following Figure to answer the question : Figure 2-3 : -Refer to Figure 2-3. What do the rectangles represent in the figure?

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

An economy's production of two goods is efficient if

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Points A, B, and D represent efficient outcomes for this economy.

Use the following Figure to answer the question : Figure 2-8 : -Refer to Figure 2-8. Point K represents an outcome in which

Macroeconomics is the study of

The y-coordinate is the

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

For economists, historical episodes

In the circular-flow diagram, firms produce goods and services using the factors of production.

The slope of a line that passes through the points 5, 8) and 12, 12) is

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?