Exam 2: Thinking Like an Economist

Figure 2-21 -Refer to Figure 2-21. Your friend John created the graph above to illustrate that snowstorms are caused by more snowblowers being sold. You inform him that his interpretation is incorrect due to

Factors of production are

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Which of the following transactions takes place in the markets for the factors of production in the circular-flow diagram?

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following combinations of corn and wheat is not currently attainable but would be attainable if there was an improvement in overall production technology?

Congress relies on economists at the Congressional Budget Office to

Which types of models are built with assumptions?

Economists usually have to make do with whatever data the world happens to give them.

When two variables have a positive correlation,

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Figure 2-2 -Refer to Figure 2-2. Boxes C and D of this circular-flow diagram represent

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). Production at point K is

For economists, historical episodes

When two variables have a negative correlation,

Economists make use of assumptions, some of which are unrealistic, for the purpose of

An ordered pair is

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

An economy's production of two goods is efficient if

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

Figure 2-6 -Refer to Figure 2-6. If this economy moves from point F to point G, then which of the following statements is correct?