Exam 2: Thinking Like an Economist

How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

Use the following Figure to answer the question : Figure 2-20 : Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years. Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes. Who is correct?

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point Z is called

Efficiency is illustrated by

In the ordered pair 3, 6), 3 is the

An assumption an economist might make while studying international trade is

What you must give up to get something else is called the

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Efficient production is represented by which points)?

Economic models

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Economists believe that production possibilities frontiers

When two variables move in opposite directions, the curve relating them is

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point A to point B?

A microeconomist - as opposed to a macroeconomist - might study

When economists make

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.