Exam 2: Thinking Like an Economist

Table 2-5 -Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

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

Which of the following is not correct?

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following combinations of corn and wheat is not currently attainable but would be attainable if there was an improvement in overall production technology?

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

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

Figure 2-8 -Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

Which of the following statements is correct about the roles of economists?

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Economic models can help us understand reality only when they include all details of the economy.

The slope of a steep upward-sloping line will be a

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Factors of production are

When economists are trying to explain the world, they are

The slope of a line that passes through the points 5, 8) and 12, 12) is

Macroeconomics is the study of economy-wide phenomena.

It is possible for an economy to increase its production of both goods if the economy

"Society would be better off if the welfare system were abolished" is a normative statement, not a positive statement.

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the