Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Unemployment could cause this economy to produce at point B.

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Just like models constructed in other areas of science, economic models

Assumptions can simplify the complex world and make it easier to understand.

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Economists use one standard set of assumptions to answer all economic questions.

Use the following Figure to answer the question : Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. If this economy devotes all of its available resources to producing apples, then it will produce

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

The institution that sets the nation's monetary policy is called the

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

In the circular-flow diagram, in the markets for

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The opportunity cost of moving from point J to point L is

What type of statement is a descriptive statement about how the world is?

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

In the markets for goods and services in the circular-flow diagram,

Use the following Figure to answer the question : Figure 2-21 : -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a). The opportunity cost of one sofa is highest when the economy produces