Exam 2: Thinking Like an Economist

Which of the following trade-offs does the production possibilities frontier illustrate?

When two variables move in the same direction, the curve relating them is

In the circular-flow diagram, factors of production are the goods and services produced by firms.

When two variables move in opposite directions, the curve relating them is

Economic models

Which of the following concepts cannot be illustrated by the production possibilities frontier?

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Where can an economy not produce?

Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which points)?

The decision of which assumptions to make is

For economists, statements about the world are of two types:

Economists speaking like scientists make

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point B is called

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Evaluating normative statements involves values as well as facts.

Which of the following is not held constant when looking at an individual's demand curve?

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. Which points) on the graph isare) unattainable given current resources and technology?

In addition to advising the president, one duty of the Council of Economic Advisers is to

Which of the following is a correct statement about production possibilities frontiers?

Different values are not a reason for disagreement among economists.