Exam 2: Thinking Like an Economist

The nation's antitrust laws are enforced by economists at the Department of

A circular-flow model and production possibilities frontier are similar in that

Which of the following steps does an economist take when studying the economy?

According to the circular flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient.

What type of statement is a prescriptive statement about how the world ought to be?

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

Economists use some familiar terms in specialized ways

Microeconomics is the study of

Figure 2-23 -Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

In the circular-flow diagram, another name for goods and services produced by firms is

Figure 2-23 -Refer to Figure 2-23. It is possible for this economy to produce 75 doghouses.

A macroeconomist - as opposed to a microeconomist - might study the effect of

A relatively steep demand curve indicates that

Good assumptions simplify a problem without substantially affecting the answer.

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

Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

Figure 2-7 -Refer to Figure 2-7. This economy cannot produce at which points)?

Which of the following is an example of a capital input?