Exam 2: Thinking Like an Economist

The opportunity cost of something is what you give up to get it.

You know an economist has crossed the line from scientist to policy adviser when he or she

The Council of Economic Advisers consists of thirty members and a staff of several dozen economists.

Differences in scientific judgement between economists are similar to all of the following except

Because it is difficult for economists to use experiments to generate data, they generally must

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Economists may disagree about the validity of alternative positive theories about how the world works.

One thing economists do to help them understand how the real world works is

Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which points)?

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Economic models are built with

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels?

Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

The x-coordinate is the

Two variables that have a negative correlation move in opposite directions.

One difference between a hypothetical benevolent king implementing the best policy and the president implementing the best policy in the real world is the president has to be concerned about

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Economists regard events from the past as

Which of the following statements is correct about the extent of disagreement among economists?

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.