Exam 2: Thinking Like an Economist

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

Graphs such as bar graphs and pie charts are limited in that they

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

The slope of a line that passes through the points 20, 30) and 40, 14) is

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

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

In the early 19th century, the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic. The villagers noticed that wherever doctors appeared, people died. Therefore, many doctors were chased away from villages, and some were even killed. This reaction to the correlation between doctors and deaths is most likely a problem of

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Figure 2-5 -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

In principle, we can

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

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

When two variables have a negative correlation,

Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

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

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The opportunity cost of one cup of coffee is highest when the economy produces

Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

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

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is