Exam 2: Thinking Like an Economist

Figure 2-8 -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

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

Figure 2-3 -Refer to Figure 2-3. Which shape refers to the markets for goods and services?

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of corn from 400 bushels to 800 bushels?

Figure 2-23 -Refer to Figure 2-23. Unemployment could cause this economy to produce at point B.

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

In the circular-flow diagram,

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

Economic models

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 show unemployment of resources?

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

Economic models can help us understand reality only when they include all details of the economy.

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

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

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

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is a(n)