Exam 2: Observing and Explaining the Economy

Which of the following is most likely a microeconomic concept?

Economic models need to resemble, as much as possible, the phenomena being explained.

For policy decisions to be useful,

The ceteris paribus, or everything else held constant, assumption is used in economics primarily to identify unstable equilibrium situations.

The relative price of gasoline has decreased since 2012 because we have paid more dollars for each gallon of gasoline.

The relative price of an iPhone is

Consider a ratio for the total number of miles traveled by car divided by the total number of drivers.

In describing the relationship between X and Y, the ceteris paribus assumption implies that

Consider an economic model of tablet production, which depends on the number of workers. Represent this model graphically, algebraically, and verbally.

Economists are likely to evaluate the impacts of rising gasoline prices through the use of

A hypothesis is

Exhibit 2-1 -Exhibit 2-1 shows movements of two variables, X and Y, from 2007 through 2016. From this diagram the most one can conclude is that

A two-dimensional graph cannot be used to show what will happen to the relationship between X and Y if any of the ceteris paribus assumptions change.

Exhibit 2A-5 -Refer to Exhibit 2A-5. The movement from C to B is called a

A curve shows that every time family income increases by $1, spending increases by $.75. This curve would

Two variables are negatively correlated if

All of the following are examples of an economic variable except

To argue that economics is the only science not used objectively is

Macroeconomics deals with large industries such as the health-care industry.

Refer to the information in the following table: Using the numerical examples in the table, show that the relative price of smartphones can fall on occasions where the price of those goods could be rising, falling, or remaining unchanged.