Exam 2: Thinking Like an Economist

Figure 2-21 -Refer to Figure 2-21. According to the graph, snowstorms

When two variables have a negative correlation,

Policymaking in a representative democracy

The production possibilities frontier provides an illustration of the principle that

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point Z is called

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

Which markets are represented in the simple circular-flow diagram?

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

A demand curve shows the relationship

Figure 2-8 -Refer to Figure 2-8. Efficient production is represented by which points)?

"Other things equal, an increase in supply causes a decrease in price" is a normative statement, not a positive statement.

Graphs such as bar graphs and pie charts are limited in that they

The President receives economic policy advice from economists at each of the following except

In the markets for the factors of production in the circular-flow diagram,

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Which of the following is not an example of a positive, as opposed to normative, statement?

Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed. Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik

The scientific method is the dispassionate development and testing of theories about how the world works.