Exam 2: Observing and Explaining the Economy

Exhibit 2A-6 -Exhibit 2A-6 shows the relationship between the price of sodas and the quantities that two families are willing to buy. Suppose that both families are willing to buy more sodas while the soda price remain constant. Which of the following is correct?

Consider an economic model of tablet production, which depends on the number of workers. Represent this model graphically, algebraically, and verbally. Tablets Workers 0 0 20 1 40 2 60 3 80 4

Exhibit 2A-5 True/False -According to Exhibit 2A-5, the slope of line 1 may be 1.25, whereas the slope of line 2 may be .75.

When people survey economists' beliefs, they find

Which of the following is most likely a microeconomic concept?

Economists develop new models only when new economic data become available.

The table below shows the inflation rate for the period 2006 through 2016. Suppose you wanted to show that there was not much variation in the inflation rate over this period. How would you represent this table in a graph? Suppose you wanted to show that there was a large amount of variation during this period. How would you represent this table in a graph? Year Inflition R.te 2006 3.2 2007 2.9 2008 3.8 2009 -[1.3 2010 1.6 2011 3.1 2012 2.1 2013 1.5 2014 1.6 2015 0.1 2016 1.3

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

In his book Wealth of Nations, Adam Smith made a positive statement when he advocated about what the government should or should not do to affect an economy.

A hypothesis is

Exhibit 2A-3 -A relationship showing that exam grades are positively related to hours of study can be described by a curve that

The category of economics that contains statements about what ought to be is known as

The relative price of an iPhone is

Explain how the distinction between positive and normative economics provides insight as to why economists do disagree.

All of the following are what economists commonly do except

Explain why economics requires historical and philosophical skills in addition to analytical skills.

Exhibit 2A-8 X Y 25 60 33 69 40 76 42 78 jT True/False -There is a linear relationship between X and Y in Exhibit 2A-8.

Suppose you decide to build a model to explain why some companies earned more profits in the past year than others did. (A) What data wauld yau collect? (B) What variable do you believe wauld supply the major part of the explanation of the rariation in profits? (C) If you graph the data winth profits an the vertical gods and your explanatory variable an the horizontal axis, will the relationship be upward sloping or downward sloping? (D) What does your answer in part (C) imply far whether the data an profits and the data an yaur exglanatory variable are positvely ar negatively carrelated?

Explain how new models or theories are developed in economics.

Exhibit 2A-3 -In Exhibit 2A-3, the curve has a