Exam 2: Thinking Like an Economist

What is a coordinate system used for

How does a scientist make assumptions

What is a model

What would unemployment cause an economy to do

When economists are speaking as policy advisors,which statements are they more likely to use

What observation did Albert Einstein once make about science

Identify each of the following topics as being part of microeconomics or macroeconomics: a.the impact of a change in consumer income on the purchase of vacation properties b.the effect of a change in the price of eggs on the consumption of bacon c.the impact of a war in the Middle East on the rate of inflation in Canada d.factors influencing the rate of economic growth e.factors influencing the demand for cellphones f.the impact of tax policy on national saving g.the effect of pollution taxes on the Canadian coal industry h.the degree of competition in the airline industry i.the effect of an increase in the money supply on interest rates j.the impact of deregulation on the financial industry

Why is the use of theory and observation more difficult in economics than in sciences,such as physics

Because it is difficult for economists to use experiments to generate data,what must they generally do

What is the point where both x and y are zero called

This is an exercise in model building,based on the idea that one better understands the concept of models when faced with the task of making them. a.Construct a block diagram showing how different levels of governments interact with taxpayers and with each other in a federal state like Canada.Indicate with arrows what they exchange with each other.Identify the main elements of your model. b.Describe your model in a few sentences. c.What makes your description to be a model,instead of an accurate picture of the Canadian economy d.What purpose can your model serve,or is there anything that this model helped you understand

What happens when a relevant variable that is not named on either axis changes

What is NOT a common characteristic of economic models

What do economists at Industry Canada do

How did the great economist John Maynard Keynes explain his comment that although economics is an easy subject compared with the higher branches of philosophy or pure science,it is a subject at which few excel

Figure 2-3 -Refer to Figure 2-3.Which point represents the maximum possible production of tubas

Figure 2-2 -Refer to Figure 2-2.What does the outer loop represent

Suppose an economy produces two goods: food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 91 units of food and 48 machines.This year,it is producing 95 units of food and 51 machines.Which of the following would NOT explain the increase in output

What is meant by scientific method

Which statement best describes the way economists study the economy