Exam 2: Thinking Like an Economist

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

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

Points on the production possibilities frontier represent efficient levels of production.

The Council of Economic Advisers

Figure 2-3 -What you must give up to get something else is called the

Economists usually have to make do with whatever data the world happens to give them.

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

The Council of Economic Advisers

Which of the following is not correct?

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

Identify each of the following topics as being part of microeconomics or macroeconomics: a. the impact of a change in consumer income on the purchase of luxury automobiles b. the effect of a change in the price of Coke on the purchase of Pepsi c. the impact of a war in the Middle East on the rate of inflation in the United States d. factors influencing the rate of economic growth e. factors influencing the demand for tractors f. the impact of tax policy on national saving g. the effect of pollution taxes on the U.S. copper industry h. the degree of competition in the cable television industry i. the effect of a balanced-budget amendment on economic stability j. the impact of deregulation on the savings and loan industry

The field of economics is traditionally divided into two broad subfields,A: The Economist as Scientist

Economists at which administrative department help design tax policy?

The design of tax policy is one of the responsibilities of economists who work at the

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

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