Exam 2: Thinking Like an Economist

What do economists from the Department of Finance provide?

What is the goal of theories?

What does a point on a country's production possibilities frontier represent?

In a pie chart, what does each "slice" of the pie represent?

What does a normative statement describe?

Why are production possibilities frontiers usually bowed outward?

In which department do economists help enforce competition laws?

What can good assumptions do?

What have economists often observed while studying the effects of public policy changes?

Figure 2-6 -Refer to Figure 2-6. What is the opportunity cost to society of the movement from point A to point C?

Figure 2-9 -Refer to Figure 2-9. What would you say about the relationship between coffee and hours without sleep?

What is a circular-flow diagram?

-Refer to Table 2-1. How does the opportunity cost of producing an additional 100 dolls change as more dolls are produced?

How do economists begin building an economic model?

Figure 2-8 -Refer to Figure 2-8. What is the opportunity cost of moving from point A to point B?

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

Figure 2-10 -Refer to Figure 2-10. What is the movement from point B to point C?

What are tariffs and quotas?

What observation did Albert Einstein once make about science?

What did a survey that asked the opinion of academic, business, and government economists on ten propositions about economic policy find?