Exam 2: Thinking Like an Economist

Figure 2-8 -Refer to Figure 2-8. To reach point L, the economy would have to

"Society would be better off if the welfare system were abolished" is a normative statement, not a positive statement.

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a). The opportunity cost of moving from point K to point L is

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Figure 2-8 -Refer to Figure 2-8. Efficient production is represented by which point(s)?

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

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

Points on the production possibilities frontier represent efficient levels of production.

With respect to how economists study the economy, which of the following statements is most accurate?

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?

Figure 2-23 -Refer to Figure 2-23. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

If an economy is producing efficiently, then

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

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

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 point(s) on the graph is(are) efficient production possibilities?

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

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

A relatively steep demand curve indicates that

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point B to point D is 15 doghouses.