Question 1

Data collected of several variables but for the same time period are called

Accepted Answer

A)  cross-sectional data. 
B)  time-analysis data. 
C)  logarithmic data. 
D)  topographic data. 
E)  time-series data. 
A)  cross-sectional data. 
B)  time-analysis data. 
C)  logarithmic data. 
D)  topographic data. 
E)  time-series data.

Question 2

The table below shows the approximate value of Canadaʹs 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 2009 is the base year, with an index number = 100. What is the index number for the value of crude oil exports in 2012?

Accepted Answer

A)  1.72 
B)  30.5 
C)  171.8 
D)  30.5% 
E)  0.31 
A)  1.72 
B)  30.5 
C)  171.8 
D)  30.5% 
E)  0.31

Question 3

The table below shows hypothetical data for the volume of gold and nickel output across several years.   TABLE 2-6
-Refer to Table 2-6. What is the index number for nickel output in Year 3?

Accepted Answer

A)  92.4% 
B)  -379 
C)  379 
D)  0.924% 
E)  92.4 
A)  92.4% 
B)  -379 
C)  379 
D)  0.924% 
E)  92.4

Question 4

The table below shows hypothetical data for the volume of gold and nickel output across several years.   TABLE 2-6
-Refer to Table 2-6. What is the percentage change in gold output from Year 1 to Year 7?

Accepted Answer

A)  17.9% 
B)  84.8% 
C)  15.2% 
D)  -15.2% 
E)  0.152% 
A)  17.9% 
B)  84.8% 
C)  15.2% 
D)  -15.2% 
E)  0.152%

Question 5

The table below shows hypothetical tuition costs at a Canadian university.   TABLE 2-1
-Refer to Table 2-1. Assume that 2014 is used as the base year, with the index number = 100. The value of the index number in 2012 is calculated as follows:

Accepted Answer

A)  5000/5100 = 0.98. 
B)  5100/5000) × 100 = 102. 
C)  5100/5000 = 1.02. 
D)  5100/5100 = 100. 
E)  5000/5100) × 100 = 98. 
A)  5000/5100 = 0.98. 
B)  5100/5000) × 100 = 102. 
C)  5100/5000 = 1.02. 
D)  5100/5100 = 100. 
E)  5000/5100) × 100 = 98.

Question 6

Choose the answer that best explains why economists build models that abstract from the complexities of reality.

Accepted Answer

A)  Because the complexities of reality are unimportant. 
B)  Because they believe they gain a greater understanding of reality. 
C)  Because economists are not interested in reality. 
D)  Because this allows economists to conduct controlled experiments to test their theories. 
E)  Because economics deals only in the abstract. 
A)  Because the complexities of reality are unimportant. 
B)  Because they believe they gain a greater understanding of reality. 
C)  Because economists are not interested in reality. 
D)  Because this allows economists to conduct controlled experiments to test their theories. 
E)  Because economics deals only in the abstract.

Question 7

FIGURE 2-3
-Refer to Figure 2-3. The slope of curve A is

Accepted Answer

A)  zero. 
B)  negative and variable. 
C)  positive and variable. 
D)  positive from X1 to X2 and negative from X2 to X3. 
E)  negative from X1 to X2 and positive from X2 to X3. 
A)  zero. 
B)  negative and variable. 
C)  positive and variable. 
D)  positive from X1 to X2 and negative from X2 to X3. 
E)  negative from X1 to X2 and positive from X2 to X3.

Question 8

FIGURE 2-4
-Refer to Figure 2-4. Suppose we draw a straight line tangent to point B of the non -linear function. The straight line has a slope of 0.075. What information is conveyed to us by this measurement?

Accepted Answer

A)  At point B, the marginal response to the application of 30 units of fertilizer per acre is 0.075 tonnes of wheat. 
B)  At point B, if one additional unit of fertilizer is applied per acre, the marginal response is 0.075 tonnes of wheat per acre. 
C)  Because point B is midway between point A and point C, the yield per acre is 0.075 tonnes of wheat when fertilizer applied is between 10 and 60 units per acre. 
D)  At point B, when fertilizer is applied at a rate of 30 units per acre, the yield is 0.075 tonnes per acre. 
E)  At point B, the marginal response to the application of 0.075 units of fertilizer is between 4 and 5 tonnes per acre. 
A)  At point B, the marginal response to the application of 30 units of fertilizer per acre is 0.075 tonnes of wheat. 
B)  At point B, if one additional unit of fertilizer is applied per acre, the marginal response is 0.075 tonnes of wheat per acre. 
C)  Because point B is midway between point A and point C, the yield per acre is 0.075 tonnes of wheat when fertilizer applied is between 10 and 60 units per acre. 
D)  At point B, when fertilizer is applied at a rate of 30 units per acre, the yield is 0.075 tonnes per acre. 
E)  At point B, the marginal response to the application of 0.075 units of fertilizer is between 4 and 5 tonnes per acre.

Question 9

Figure 2-5 shows monthly average per unit) production costs for producing Good X.
   FIGURE 2-5
-Refer to Figure 2-5. What is the slope of this non-linear function when 1200 units per month are being produced?

Accepted Answer

A)  0.25 
B)  -0.25 
C)  4 
D)  -4 
E)  -2 
A)  0.25 
B)  -0.25 
C)  4 
D)  -4 
E)  -2

Question 10

When studying economic data, index numbers are especially valuable when comparing

Accepted Answer

A)  relative movements in different variables measured in different units. 
B)  relative movements in real and nominal variables. 
C)  linear and logarithmic data. 
D)  time-series data with cross-sectional data. 
E)  government data with private-sector data. 
A)  relative movements in different variables measured in different units. 
B)  relative movements in real and nominal variables. 
C)  linear and logarithmic data. 
D)  time-series data with cross-sectional data. 
E)  government data with private-sector data.

Question 11

FIGURE 2-1
-On a coordinate graph with y on the vertical axis and x on the horizontal axis, suppose point A represents
Co-ordinates x = 2, y = 16) and point B represents coordinates x = 10, y = 4). What is the slope of the straight line joining points A and B?

Accepted Answer

A)  0.75 
B)  -0.75 
C)  1.5 
D)  -1.5 
E)  -0.43 
A)  0.75 
B)  -0.75 
C)  1.5 
D)  -1.5 
E)  -0.43

Question 12

The table below shows hypothetical tuition costs at a Canadian university.   TABLE 2-1
-Refer to Table 2-1. Assume that 2012 is used as the base year, with the index number = 100. The value of the index number in 2016 is

Accepted Answer

A)  100. 
B)  104. 
C)  1.04. 
D)  96. 
E)  0.96. 
A)  100. 
B)  104. 
C)  1.04. 
D)  96. 
E)  0.96.

Question 13

Economists build models that abstract from the complexities of reality because

Accepted Answer

A)  it is easier to do so. 
B)  they believe they gain a greater understanding of reality. 
C)  economists are not interested in reality. 
D)  economists do not understand the real world. 
E)  the complexities of reality are unimportant. 
A)  it is easier to do so. 
B)  they believe they gain a greater understanding of reality. 
C)  economists are not interested in reality. 
D)  economists do not understand the real world. 
E)  the complexities of reality are unimportant.

Question 14

The scientific approach to economic inquiry involves

Accepted Answer

A)  choosing data that will support the predictions. 
B)  using only endogenous variables in economic models. 
C)  testing the predictions with empirical data. 
D)  testing the reality of the assumptions of the model. 
E)  using only independent variables. 
A)  choosing data that will support the predictions. 
B)  using only endogenous variables in economic models. 
C)  testing the predictions with empirical data. 
D)  testing the reality of the assumptions of the model. 
E)  using only independent variables.

Question 15

On a coordinate graph with y on the vertical axis and x on the horizontal axis, what is the Y intercept of the function X = 60 + 3Y?

Accepted Answer

A)  -20 
B)  0.1 
C)  3.0 
D)  20 
E)  60 
A)  -20 
B)  0.1 
C)  3.0 
D)  20 
E)  60

Question 16

When it is said that variable A depends on variable B, then A is

Accepted Answer

A)  a derivative of B. 
B)  proportional to B. 
C)  partially exclusive of B. 
D)  a function of B. 
E)  independent of B. 
A)  a derivative of B. 
B)  proportional to B. 
C)  partially exclusive of B. 
D)  a function of B. 
E)  independent of B.

Question 17

According to the Bank of Canadaʹs website, Canadaʹs Consumer Price Index CPI) in August 2012 was 121.8, August 2013 was 123.1, August 2014 was 125.7 and August 2015 was 127.3. Given this set of index numbers, what can we conclude about average prices in Canada between August 2012 and August 2015?

Accepted Answer

A)  average prices increased over this time period by 27.3% 
B)  average prices decreased over this time period by 5.5% 
C)  average prices decreased each year 
D)  average prices increased over this time period by 5.5% 
E)  average prices increased each year 
A)  average prices increased over this time period by 27.3% 
B)  average prices decreased over this time period by 5.5% 
C)  average prices decreased each year 
D)  average prices increased over this time period by 5.5% 
E)  average prices increased each year

Question 18

A positive statement is one that states

Accepted Answer

A)  what is, was, or will be. 
B)  what is and what should be. 
C)  what should be but is not. 
D)  what is desirable. 
E)  non-negative numbers. 
A)  what is, was, or will be. 
B)  what is and what should be. 
C)  what should be but is not. 
D)  what is desirable. 
E)  non-negative numbers.

Question 19

The table below shows hypothetical prices for a particular anatomy textbook at a university bookstore over several years.   TABLE 2-4
-Refer to Table 2-4. Assume that 2012 is used as the base year, with the index number = 100. The value of the index number in 2015 is calculated as follows:

Accepted Answer

A)  215/180 = 1.194. 
B)  180/215 = 0.837. 
C)  215/180) × 100 = 119.4. 
D)  180/215) × 100 = 83.7. 
E)  215 - 180) = 35. 
A)  215/180 = 1.194. 
B)  180/215 = 0.837. 
C)  215/180) × 100 = 119.4. 
D)  180/215) × 100 = 83.7. 
E)  215 - 180) = 35.

Question 20

Which of the following best describes the relationship between positive and normative statements in economics?

Accepted Answer

A)  Normative statements are those with which all economists agree; positive statements may give rise to some disagreement. 
B)  Positive and normative statements are alternate ways of describing the desirability of certain economic policies. 
C)  Normative statements evaluate the desirability of certain economic changes; positive statements do not. 
D)  Neither positive nor normative statements are concerned with the desirability of certain economic changes. 
E)  Economists generally agree with each other regardless of whether a question is positive or normative. 
A)  Normative statements are those with which all economists agree; positive statements may give rise to some disagreement. 
B)  Positive and normative statements are alternate ways of describing the desirability of certain economic policies. 
C)  Normative statements evaluate the desirability of certain economic changes; positive statements do not. 
D)  Neither positive nor normative statements are concerned with the desirability of certain economic changes. 
E)  Economists generally agree with each other regardless of whether a question is positive or normative.

Exam 2: Economic Theories, Data, and Graphs

Data collected of several variables but for the same time period are called

The table below shows hypothetical data for the volume of gold and nickel output across several years. TABLE 2-6 -Refer to Table 2-6. What is the index number for nickel output in Year 3?

The table below shows hypothetical data for the volume of gold and nickel output across several years. TABLE 2-6 -Refer to Table 2-6. What is the percentage change in gold output from Year 1 to Year 7?

The table below shows hypothetical tuition costs at a Canadian university. TABLE 2-1 -Refer to Table 2-1. Assume that 2014 is used as the base year, with the index number = 100. The value of the index number in 2012 is calculated as follows:

Choose the answer that best explains why economists build models that abstract from the complexities of reality.

FIGURE 2-3 -Refer to Figure 2-3. The slope of curve A is

FIGURE 2-4 -Refer to Figure 2-4. Suppose we draw a straight line tangent to point B of the non -linear function. The straight line has a slope of 0.075. What information is conveyed to us by this measurement?

Figure 2-5 shows monthly average per unit) production costs for producing Good X. FIGURE 2-5 -Refer to Figure 2-5. What is the slope of this non-linear function when 1200 units per month are being produced?

When studying economic data, index numbers are especially valuable when comparing

FIGURE 2-1 -On a coordinate graph with y on the vertical axis and x on the horizontal axis, suppose point A represents Co-ordinates x = 2, y = 16) and point B represents coordinates x = 10, y = 4). What is the slope of the straight line joining points A and B?

The table below shows hypothetical tuition costs at a Canadian university. TABLE 2-1 -Refer to Table 2-1. Assume that 2012 is used as the base year, with the index number = 100. The value of the index number in 2016 is

Economists build models that abstract from the complexities of reality because

The scientific approach to economic inquiry involves

On a coordinate graph with y on the vertical axis and x on the horizontal axis, what is the Y intercept of the function X = 60 + 3Y?

When it is said that variable A depends on variable B, then A is

According to the Bank of Canadaʹs website, Canadaʹs Consumer Price Index CPI) in August 2012 was 121.8, August 2013 was 123.1, August 2014 was 125.7 and August 2015 was 127.3. Given this set of index numbers, what can we conclude about average prices in Canada between August 2012 and August 2015?

A positive statement is one that states

The table below shows hypothetical prices for a particular anatomy textbook at a university bookstore over several years. TABLE 2-4 -Refer to Table 2-4. Assume that 2012 is used as the base year, with the index number = 100. The value of the index number in 2015 is calculated as follows:

Which of the following best describes the relationship between positive and normative statements in economics?

Economic Issues and Concepts

Demand, Supply, and Price

Elasticity

Price Controls and Market Efficiency

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, Cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

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

Output and Prices 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

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