Exam 2: Observing and Explaining the Economy

To argue that economics is a partisan policy tool means that

An economic variable is any economic measure that

The table shows the price of motor fuel (mainly gasoline) and the overall price level (the consumer price index) in five-year intervals over the period 1990 through 2015. Year Matm Fuel Price Overall Price Leval 1990 101.1 130.7 1995 99.9 152.4 2000 129.3 172.2 2005 195.8 195.3 2010 239.7 218.1 2015 212.3 237. (A) Plat a dearman of the relatre price of motar fuel far the $1990 - 2015$ period. (B) Eoglain what has beenhappering to the relative price of motar fuel aver this period

Suppose an economic study shows that increasing the tax rate on alcoholic beverages will reduce the amount of traffic accidents. Which of the following statements can be valid based on the study because they are positive statements, and which cannot be valid because they are normative statements. (A) "Increasing the tax rate an alcaholic beverages is amethad of reducing taffic accidents."․" (B) "If the goverment wrishes to reduce taffic accitents, it aught to raise the tar an alcoholic beverages." (C) "The goverment should not raise the tar an alcoholic beverages for lowr-incame Hririkers."

Economic models

Economics was originally called

Consider a straight line with a slope of +1 that intersects the origin. It dissects the positive X-Y quadrant. Select any point on the line. What must be true about the distance between the origin and the X coordinate and between the origin and the Y coordinate?

A two-dimensional diagram can be represented by the

Suppose the value of one variable rises while the value of another variable falls; then the slope of the relationship between the two variables is between 0 and 1.

A market economy in which the government plays some role is called

Refer to the table below. Analyze the data on the number of meals served at small and large restaurants. The number of meals served will vary with the number of cooks employed at the restaurant. Meals Served at Small Restaurants Meals Served at Large Restaurants Nunber of Cooks 0 0 0 10 15 1 15 23 2 19 29 3 (A) Show the relatinghip between codks and meals served by Iraphing twa curves with cooks an the harizantal azis and the number of meals an the vertical ayis. How do the slopes of the curves change as mare couks are emplayed? (B) Is the change in the mumber of cooks a shift in the curve ar amcvement along the curve? (C) Is the change in the size of the restaurant a shift in the curve or a mavement along the curve?

A good explanation for why people believe economists always disagree is that

Which of the following is considered a macroeconomic question?

Macroeconomics is concerned primarily with

Economics is mainly concerned with financial issues.

If two variables are correlated, then it must be true that one of the variables causes the other.

Karl Marx argued that capitalism would eventually collapse and give rise to a new economic system, which is called

All microeconomic issues are normative in nature.

Because economists have varying moral beliefs and different views of the world,

Those who support a laissez faire system