Exam 2: Thinking Like an Economist

Another term for factors of production is

A model that shows how dollars flow through markets among households and firms is called the

Yi and Avik are both economists. Yi thinks that taxing consumption, rather than income, would result in higher household saving because income that is saved would not be taxed. Avik does not think that household saving would respond much to a change in the tax laws. In this example, Yi and Avik

Economists at the Department of Justice

Figure 2-23 -Refer to Figure 2-23. Points A, B, and D represent efficient outcomes for this economy.

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Figure 2-3 -Refer to Figure 2-3. What do the inner arrows represent in the figure?

Microeconomics and macroeconomics are closely intertwined.

Which of the following is an example of a normative - as opposed to a positive - statement?

Figure 2-23 -Refer to Figure 2-23. Points A, B, and D represent feasible outcomes for this economy.

Economic models omit many details to allow us to see what is truly important.

Which of the following is not correct?

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

A pie chart is a way to display information regarding two variables.

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) and Panel b). A shift of the economy's production possibilities frontier from Panel a) to Panel b) could be caused by

Which of the following statements is an example of a positive, as opposed to normative, statement?

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

Which of the following statements applies to economics, as well as to other sciences such as physics?

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. As the economy moves from point A to point D, is the opportunity cost of cars increasing, constant, or decreasing?

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.