Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-12 -Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

Use the following Figure to answer the question : Figure 2-15 : -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

In the simple circular-flow diagram,

According to the circular flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

For economists, substitutes for laboratory experiments often come in the form of

Analysis of data on workers and those looking for work is conducted by economists at the

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Which of the following steps does an economist take when studying the economy?

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Use the following Figure to answer the question Figure:2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Production is efficient if the economy is producing at a point

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The movement from point M to point K could be caused by

Economists at the Department of the Treasury

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

The president of the United States receives tax policy advice from economists in the