Question 1

The statement that a country's rate of economic growth is positively influenced by its level of investment is an example of a(n)

Accepted Answer

A) variable. 
B) definition. 
C) normative statement. 
D) theory. 
E) economic law. 
A) variable. 
B) definition. 
C) normative statement. 
D) theory. 
E) economic law. D

Question 2

Suppose there is a linear relationship between the ticket price (P)to a university basketball game and the number of tickets sold (Q).If the ticket price is $20,then 600 tickets are sold; if the ticket price is $8,then 3000 tickets are sold.What is the slope of the function if Q is plotted on the horizontal axis and P is plotted on the vertical axis?

Accepted Answer

A) -0.005 
B) -0.05 
C) 0 
D) 0.05 
E) 0.005 
A) -0.005 
B) -0.05 
C) 0 
D) 0.05 
E) 0.005 A

Question 3

The base year for an index number is

Accepted Answer

A) determined by the year the variable equals exactly 100. 
B) dependant upon the type of data. 
C) declared by the federal government. 
D) chosen arbitrarily by those who construct the data series. 
E) the year in which 2 or more index numbers are equal to 100. 
A) determined by the year the variable equals exactly 100. 
B) dependant upon the type of data. 
C) declared by the federal government. 
D) chosen arbitrarily by those who construct the data series. 
E) the year in which 2 or more index numbers are equal to 100. D

Question 4

Which of the following statements belongs more properly in the field of normative economics than positive economics?

Accepted Answer

A) An increase in the minimum wage leads to more unemployment. 
B) The price of one Canadian dollar is $0.85 U.S. 
C) When a drought occurs,the price of vegetables tends to rise. 
D) Canadian governments should provide assistance to the auto industry. 
E) Technological change has reduced the cost of cell phone service. 
A) An increase in the minimum wage leads to more unemployment. 
B) The price of one Canadian dollar is $0.85 U.S. 
C) When a drought occurs,the price of vegetables tends to rise. 
D) Canadian governments should provide assistance to the auto industry. 
E) Technological change has reduced the cost of cell phone service.

Question 5

FIGURE 2-1 Refer to Figure 2-1.What is the slope of the line in part (ii)of the figure?

Accepted Answer

A) 12.5 
B) -12.5 
C) 1 
D) 0.05 
E) 0.08 
A) 12.5 
B) -12.5 
C) 1 
D) 0.05 
E) 0.08

Question 6

Suppose Ahmoud would spend $1200 per year on travel,even if his annual income were zero.As his income rises,he would spend 20% of each additional dollar of income on travel.Choose the correct mathematical equation that describes the functional relation between his travel spending (T)and his income (Y).

Accepted Answer

A) Y = 1200 + 0.2T 
B) Y = 1200 - 0.2T 
C) T = 0.2 + 1200Y 
D) T = 1200 + 0.8Y 
E) T = 1200 + 0.2Y 
A) Y = 1200 + 0.2T 
B) Y = 1200 - 0.2T 
C) T = 0.2 + 1200Y 
D) T = 1200 + 0.8Y 
E) T = 1200 + 0.2Y

Question 7

Suppose we have data for 1000 students for a period of one year.The data show that those students who spend more hours studying have a higher grade point average (GPA).We can say that

Accepted Answer

A) if hours of study time increase,then GPA will automatically increase. 
B) having a higher GPA leads students to spend more time studying. 
C) there is a causal relationship between hours of study time and GPA. 
D) more hours spent studying leads to a higher GPA. 
E) there is a positive correlation between hours of study time and GPA. 
A) if hours of study time increase,then GPA will automatically increase. 
B) having a higher GPA leads students to spend more time studying. 
C) there is a causal relationship between hours of study time and GPA. 
D) more hours spent studying leads to a higher GPA. 
E) there is a positive correlation between hours of study time and GPA.

Question 8

FIGURE 2-4 Refer to Figure 2-4.This non-linear function shows that over the range shown,

Accepted Answer

A) as more fertilizer is applied,the marginal response in yield is increasing 
B) as more fertilizer is applied,the marginal change in yield is diminishing. 
C) as the yield per acre increases,the amount of fertilizer required per acre is diminishing. 
D) as the yield per acre increases,the amount of fertilizer required per acre is increasing. 
E) as more fertilizer is applied,the total yield per acre is diminishing. 
A) as more fertilizer is applied,the marginal response in yield is increasing 
B) as more fertilizer is applied,the marginal change in yield is diminishing. 
C) as the yield per acre increases,the amount of fertilizer required per acre is diminishing. 
D) as the yield per acre increases,the amount of fertilizer required per acre is increasing. 
E) as more fertilizer is applied,the total yield per acre is diminishing.

Question 9

The table below shows hypothetical monthly cell phone plan fees for the identical service over several years.   TABLE 2-2 Refer to Table 2-2.Assume that 2015 is used as the base year,with the index number = 100.Which of the following series is the correct set of index numbers for the monthly cell phone charges from 2015 to 2019?

Accepted Answer

A) 0.55; 0.50; 0.40; 0.35; 0.25 
B) 100; 91; 73; 64; 45 
C) 55; 50; 40; 35; 25 
D) 1.0; 0.91; 0.73; 0.64; 0.45 
E) 100%; 91%; 73%; 64%; 45% 
A) 0.55; 0.50; 0.40; 0.35; 0.25 
B) 100; 91; 73; 64; 45 
C) 55; 50; 40; 35; 25 
D) 1.0; 0.91; 0.73; 0.64; 0.45 
E) 100%; 91%; 73%; 64%; 45%

Question 10

Negatively related variables change such that as the value of one variable

Accepted Answer

A) decreases,the value of the other variable remains the same. 
B) increases,the value of the other variable increases. 
C) increases,the value of the other variable remains the same. 
D) decreases,the value of the other variable decreases. 
E) increases,the value of the other decreases. 
A) decreases,the value of the other variable remains the same. 
B) increases,the value of the other variable increases. 
C) increases,the value of the other variable remains the same. 
D) decreases,the value of the other variable decreases. 
E) increases,the value of the other decreases.

Question 11

The table below shows the approximate value of Canada's crude oil and natural gas exports over a 5-year period.The amounts shown are billions of dollars.   TABLE 2-7 Refer to Table 2-7.Assume that 2013 is the base year,with an index number = 100.What is the percentage change in the value of exports of natural gas from 2013 to 2017?

Accepted Answer

A) 0.8% 
B) 8% 
C) -0.8% 
D) -18% 
E) -8% 
A) 0.8% 
B) 8% 
C) -0.8% 
D) -18% 
E) -8%

Question 12

Consider the following equation: Y = 10 + 5X - X2.This equation is an expression of

Accepted Answer

A) a functional relation between X and Y. 
B) two dependent variables in a functional relation. 
C) two independent variables in a functional relation. 
D) a functional relation in a schedule format. 
E) a functional relation in a verbal format. 
A) a functional relation between X and Y. 
B) two dependent variables in a functional relation. 
C) two independent variables in a functional relation. 
D) a functional relation in a schedule format. 
E) a functional relation in a verbal format.

Question 13

FIGURE 2-4 Refer to Figure 2-4.If we want to know the marginal response of "yield per acre" due to a change in "fertilizer applied per acre of wheat" at point B,then we should determine the

Accepted Answer

A) slope of a straight line tangent to point B. 
B) slope of a straight line joining points B and C. 
C) yield per acre at 30 units of fertilizer. 
D) the slope of a straight line from the origin to point B. 
E) quantity of fertilizer applied at point B. 
A) slope of a straight line tangent to point B. 
B) slope of a straight line joining points B and C. 
C) yield per acre at 30 units of fertilizer. 
D) the slope of a straight line from the origin to point B. 
E) quantity of fertilizer applied at point B.

Question 14

The table below shows the approximate value of Canada's crude oil and natural gas exports over a 5-year period.The amounts shown are billions of dollars.   TABLE 2-7 Refer to Table 2-7.Assume that 2013 is the base year,with an index number = 100.What is the percentage change in the value of exports of crude oil from 2013 to 2017?

Accepted Answer

A) -18.3% 
B) -183.2% 
C) -100% 
D) 18.3% 
E) 183.2% 
A) -18.3% 
B) -183.2% 
C) -100% 
D) 18.3% 
E) 183.2%

Question 15

In a co-ordinate graph with Y on the vertical axis and X on the horizontal axis,the variable X is positive and the variable Y is positive in the ________quadrant.

Accepted Answer

A) top,right 
B) top,left 
C) bottom,right 
D) bottom,left 
E) any of the above 
A) top,right 
B) top,left 
C) bottom,right 
D) bottom,left 
E) any of the above

Question 16

An economist has data showing Canadian disposable income and consumption spending for the years 1960-2018.The best way to illustrate these data is

Accepted Answer

A) a pair of time-series line graphs. 
B) a separate scatter diagram for each variable. 
C) a cross-sectional graph with time series data. 
D) a cross-sectional bar chart graph. 
E) a logarithmic scale diagram. 
A) a pair of time-series line graphs. 
B) a separate scatter diagram for each variable. 
C) a cross-sectional graph with time series data. 
D) a cross-sectional bar chart graph. 
E) a logarithmic scale diagram.

Question 17

Suppose a particular theory predicts that on Monday,Wednesday,and Friday the stock market will rise and that on Tuesday and Thursday the stock market will fall.If an economist tests this theory and finds that over a six-month period the theory predicts accurately,the economist would likely say that the theory

Accepted Answer

A) has been proven correct. 
B) is reliable. 
C) is not in conflict with the evidence. 
D) shouldn't be taken seriously. 
E) is not useful because stock markets involve irrational human behaviour. 
A) has been proven correct. 
B) is reliable. 
C) is not in conflict with the evidence. 
D) shouldn't be taken seriously. 
E) is not useful because stock markets involve irrational human behaviour.

Question 18

Suppose Jillian will spend $250 on books per year,even if her income is zero.As her income rises,she will spend 8% of each additional dollar of income on books.Choose the correct mathematical equation that describes the functional relation between her spending on books (B)and her income (Y).

Accepted Answer

A) Y = 250 - 0.02 Y 
B) Y = 250 - 8Y 
C) B = 250 + 0.08 Y 
D) B = 250 + 0.02Y 
E) B = 250 + 0.2Y 
A) Y = 250 - 0.02 Y 
B) Y = 250 - 8Y 
C) B = 250 + 0.08 Y 
D) B = 250 + 0.02Y 
E) B = 250 + 0.2Y

Question 19

An economist collects data comparing per-capita expenditures on health care across provinces and territories for the year 2018.The best way to illustrate this data is

Accepted Answer

A) a time-series line graph. 
B) a cross-sectional bar-chart graph. 
C) a scatter diagram. 
D) a logarithmic scale diagram. 
E) a time-series bar chart diagram. 
A) a time-series line graph. 
B) a cross-sectional bar-chart graph. 
C) a scatter diagram. 
D) a logarithmic scale diagram. 
E) a time-series bar chart diagram.

Question 20

The table below shows the approximate value of Canada's crude oil and natural gas exports over a 5-year period.The amounts shown are billions of dollars.   TABLE 2-7 Refer to Table 2-7.Assume that 2013 is the base year,with an index number = 100.What is the index number for the value of crude oil exports in 2017?

Accepted Answer

A) 1.22 
B) 122.4 
C) 122.4% 
D) 0.817 
E) 81.7 
A) 1.22 
B) 122.4 
C) 122.4% 
D) 0.817 
E) 81.7

The statement that a country's rate of economic growth is positively influenced by its level of investment is an example of a(n)

The base year for an index number is

Which of the following statements belongs more properly in the field of normative economics than positive economics?

FIGURE 2-1 Refer to Figure 2-1.What is the slope of the line in part (ii)of the figure?

Suppose we have data for 1000 students for a period of one year.The data show that those students who spend more hours studying have a higher grade point average (GPA).We can say that

FIGURE 2-4 Refer to Figure 2-4.This non-linear function shows that over the range shown,

Negatively related variables change such that as the value of one variable

Consider the following equation: Y = 10 + 5X - X².This equation is an expression of

FIGURE 2-4 Refer to Figure 2-4.If we want to know the marginal response of "yield per acre" due to a change in "fertilizer applied per acre of wheat" at point B,then we should determine the

In a co-ordinate graph with Y on the vertical axis and X on the horizontal axis,the variable X is positive and the variable Y is positive in the ________quadrant.

An economist has data showing Canadian disposable income and consumption spending for the years 1960-2018.The best way to illustrate these data is

Suppose Jillian will spend $250 on books per year,even if her income is zero.As her income rises,she will spend 8% of each additional dollar of income on books.Choose the correct mathematical equation that describes the functional relation between her spending on books (B)and her income (Y).

An economist collects data comparing per-capita expenditures on health care across provinces and territories for the year 2018.The best way to illustrate this data is

Economic Issues and Concepts

Demand, supply, and Price

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Real Gdp and the Price Level in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

Exam 2: Economic Theories, data, and Graphs

The statement that a country's rate of economic growth is positively influenced by its level of investment is an example of a(n)

The base year for an index number is

Which of the following statements belongs more properly in the field of normative economics than positive economics?

FIGURE 2-1 Refer to Figure 2-1.What is the slope of the line in part (ii)of the figure?

Suppose we have data for 1000 students for a period of one year.The data show that those students who spend more hours studying have a higher grade point average (GPA).We can say that

FIGURE 2-4 Refer to Figure 2-4.This non-linear function shows that over the range shown,

Negatively related variables change such that as the value of one variable

Consider the following equation: Y = 10 + 5X - X2.This equation is an expression of

FIGURE 2-4 Refer to Figure 2-4.If we want to know the marginal response of "yield per acre" due to a change in "fertilizer applied per acre of wheat" at point B,then we should determine the

In a co-ordinate graph with Y on the vertical axis and X on the horizontal axis,the variable X is positive and the variable Y is positive in the ________quadrant.

An economist has data showing Canadian disposable income and consumption spending for the years 1960-2018.The best way to illustrate these data is

Suppose Jillian will spend $250 on books per year,even if her income is zero.As her income rises,she will spend 8% of each additional dollar of income on books.Choose the correct mathematical equation that describes the functional relation between her spending on books (B)and her income (Y).

An economist collects data comparing per-capita expenditures on health care across provinces and territories for the year 2018.The best way to illustrate this data is

Economic Issues and Concepts

Demand, supply, and Price

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Real Gdp and the Price Level in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

Consider the following equation: Y = 10 + 5X - X².This equation is an expression of