Exam 2: Thinking Like an Economist

Use the following Table to answer the question : Table 2-4 : Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?

The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals.

The scientific method is

The circular-flow diagram is an example of

Economists at which administrative department help enforce the nation's antitrust laws?

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Which of the following is not correct?

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular­flow diagram, then Juan's income is represented by a flow of dollars

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

In the circular-flow diagram,

Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. Unemployment could cause this economy to produce at which points)?

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

Joe and Fred are economists. Joe thinks that the wealthiest 10% of the US population should be taxed a rate higher than the rest of society because they can better afford it. Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success. In this example, Joe and Fred

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

Normative statements describe how the world is, while positive statements prescribe how the world should be.

Which of the following transactions takes place in the markets for the factors of production in the circular-flow diagram?