Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Since economists cannot use natural experiments offered by history, they must use carefully constructed laboratory experiments instead.

In the circular-flow diagram,

Economic models are built with

Use the following Figure to answer the question : Figure 2-17 -Refer to Figure 2-17. The slope of the curve between points A and B is

Which of the following is a correct statement about production possibilities frontiers?

Historical episodes are

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Which of the following is an example of using the scientific method with a natural experiment?

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Economists at which of the following offices help formulate spending plans and regulatory policies?

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of

In the markets for goods and services in the circular flow diagram, households act as

When an economy is operating at a point on its production possibilities frontier, then

Which of the following statements is correct about the roles of economists?

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

For economists, statements about the world are of two types:

In principle, we can

When economists make positive statements, they are