Exam 2: Thinking Like an Economist

Figure 2-9 -Refer to Figure 2-9, Panel (a) and Panel (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b)?

A macroeconomist - as opposed to a microeconomist - would study

The slope of a line that passes through the points (15, 10) and (7, 30) is

Figure 2-17 Relationship Between Years of Education and Annual Income -Refer to Figure 2-17. According to the graph, the correlation between years of education and annual income is

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year, it is producing 1050 units of food and 52 machines. Which of the following events could not explain the increase in output?

Figure 2-10 -Refer to Figure 2-10. Which of the following events would explain the shift of the production possibilities frontier from A to B?

The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals.

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

A circular-flow model and production possibilities frontier are similar in that

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Microeconomics and macroeconomics are closely intertwined.

Alfonso has noticed that increases in unemployment insurance claims are associated with recessions, and therefore he advocates limits on unemployment insurance so as to prevent recessions. Mary has noticed that most drug addicts once attended schools, and therefore she advocates getting rid of schools so as to prevent drug addiction.

The first number in any ordered pair is

Figure 2-4 -Refer to Figure 2-4. It is not possible for this economy to produce at point

Figure 2-4 -Refer to Figure 2-4. This economy cannot currently produce 30 notepads and 45 lamps because

Figure 2-14 -Refer to Figure 2-14. It is possible for this economy to produce 45 doghouses and 30 dishwashers.

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

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

The field of economics is traditionally divided into two broad subfields,