Exam 2: Thinking Like an Economist

Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which points)?

In economics, capital refers to

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C could have been caused by

As a substitute for laboratory experiments, economists use evidence available through history's

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Between the two ordered pairs 3, 6) and 7, 18), the slope is

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year, it is producing 1050 units of food and 52 machines. Which of the following events could not explain the increase in output?

When economists make normative statements, they are

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

To display information on two variables, an economist must use

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). To gain 2 donuts by moving from point L to point M, society must sacrifice

An economic outcome is said to be efficient if the economy is

The art in scientific thinking is

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Normative statements are

Instead of conducting laboratory experiments to generate data to test their theories, economists often

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

When an economist evaluates a positive statement, he or she is primarily

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. Which points) on the graph isare) unattainable given current resources and technology?