Exam 2: Thinking Like an Economist

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 B to point Z?

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

The Economic Report of the President

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other is constant.

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. This economy cannot produce at which points)?

Macroeconomics is the study of economy-wide phenomena.

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

When two variables have a positive correlation,

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

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Which of the following is not correct?

In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?

Policies such as rent control and trade barriers persist

"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

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

Which of the following is not an example of a graph of a single variable?

On a bowed production possibilities frontier, as you move down along the curve

Points outside the production possibilities frontier represent infeasible levels of production.

Use the following Figure to answer the question : Figure 2-11 -Refer to Figure 2-11. The shift of the production possibilities frontier from A to B illustrates

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.