Exam 2: Thinking Like an Economist

Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

When two variables have a negative correlation,

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

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

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) and Panel b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel a) to Panel b)?

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 society is producing at point T,

When two variables have a negative correlation and the x-variable decreases,

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Most economists agree that a large federal budget deficit has what type of effect on the economy?

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

The two loops in the circular-flow diagram represent

When two variables have a positive correlation,

Figure 2-2 -Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular­flow diagram, then Juan's income is represented by a flow of dollars

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Figure 2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Economists try to address their subject with a scientist's objectivity.