Exam 2: Thinking Like an Economist

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

Figure 2-2 -Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Figure 2-4 -Refer to Figure 2-4. This economy has the ability to produce at which point(s)?

Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point L to point M?

Economists at which of the following offices help formulate spending plans and regulatory policies?

"Prices rise when the quantity of money rises rapidly" is an example of a

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

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

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 A to point B?

An ordered pair is

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

A macroeconomist, rather than a microeconomist, would study the effects on a market from two firms merging.

A model can be accurately described as a

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Economists face an obstacle that many other scientists do not face. What is that obstacle?

For economists, substitutes for laboratory experiments often come in the form of

Economists hold many positions advising the president and Congress including

In the markets for goods and services in the circular-flow diagram,

The Economic Report of the President