Exam 2: Thinking Like an Economist

A production possibilities frontier shifts outward when

Differences in scientific judgement between economists are similar to all of the following except

Economic models

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) and Panel b). A shift of the economy's production possibilities frontier from Panel a) to Panel b) could be caused by

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

When economists make

Trade-offs are involved in most policy decisions.

The language of economics is

Historical episodes are not valuable to economists.

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

A circular-flow diagram is a visual model of the economy.

For economists, substitutes for laboratory experiments often come in the form of

Economic models are built with

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a). To gain 2 tractors by moving from point W to point V, society must sacrifice

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

The scientific method is the dispassionate development and testing of theories about how the world works.