Question 1

Exhibit 2A-3  
-In Exhibit 2A-3, the curve shows

Accepted Answer

A)  a constant relationship. 
B)  a direct relationship. 
C)  a straight-line relationship. 
D)  an inverse relationship. 
E)  normative economics. 
A)  a constant relationship. 
B)  a direct relationship. 
C)  a straight-line relationship. 
D)  an inverse relationship. 
E)  normative economics.

Question 2

The figure below shows the relationship of the quantity demanded for iTune music downloads per day to the price of each iTune music download.   (A) If the price of iTune music dommlaats increases fram 12 per dommaad to 14 per domidaad by how much will the quantity demanded for iTune music dowrloads change?
(B) Eolnan how yaur anser in part (A) relies on the ceteris paribm assumption.

Accepted Answer

(A)The number of iTune music downloads w

Question 3

"Inflation is a more serious problem than unemployment." This statement is an example of

Accepted Answer

A)  a normative statement. 
B)  the fallacy of composition. 
C)  a positive statement. 
D)  microeconomics. 
E)  macroeconomics. 
A)  a normative statement. 
B)  the fallacy of composition. 
C)  a positive statement. 
D)  microeconomics. 
E)  macroeconomics.

Question 4

Identify whether the following issues are macroeconomic or microeconomic and explain why you categorized them in that way.
 (A) The Prowth rate of real GDP
(B) A government policy that guarantees a minimum price of agricultural goods
(C) A tax an restaurant meals
(D) A government policy to affect the increase in the overall price level

Accepted Answer

(A) Macroecanamic is5ue because it cance

Question 5

Indicate whether you expect positive or negative correlation for the following pairs of variables. For each pair, state whether causation exists.
 (A) The use of sunglasses and the munber of sunny days.
(B) The number of movie rentals and the number of cable subscriptions
(C) Purchases of canty and purchases of Valentine's Day carts.

Accepted Answer

(A) Pastrve carrelatian. The number of 5

Question 6

Causation

Accepted Answer

A)  occurs when there is no correlation between variables. 
B)  occurs when two variables are correlated. 
C)  means one event brings about another event. 
D)  means one event is observed to occur along with another. 
E)  means one event occurs subsequently to another event. 
A)  occurs when there is no correlation between variables. 
B)  occurs when two variables are correlated. 
C)  means one event brings about another event. 
D)  means one event is observed to occur along with another. 
E)  means one event occurs subsequently to another event.

Question 7

Exhibit 2A-2  
-Suppose in 2016, on average, 10 million people were unemployed. According to Exhibit 2A-2, how many of these people had been unemployed for less than five weeks?

Accepted Answer

A)  2.5 million 
B)  25 million 
C)  0.25 million 
D)  3.2 million 
E)  32 million 
A)  2.5 million 
B)  25 million 
C)  0.25 million 
D)  3.2 million 
E)  32 million

Question 8

Economics is a study that

Accepted Answer

A)  is never relevant to people's lives. 
B)  cannot be enjoyed if economic models fail to explain the real world. 
C)  exists only to provide employment for economists. 
D)  can be enjoyed independent of its relevance to society. 
E)  can be enjoyed as long as its analysis is scientific. 
A)  is never relevant to people's lives. 
B)  cannot be enjoyed if economic models fail to explain the real world. 
C)  exists only to provide employment for economists. 
D)  can be enjoyed independent of its relevance to society. 
E)  can be enjoyed as long as its analysis is scientific.

Question 9

Describe an experiment that you would run to see how market prices are determined. Also be sure to explain where the ceteris paribus assumption is needed.

Accepted Answer

I would run an experiment by dividing a

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

Whether a nation should have more or less government involvement is basically a

Accepted Answer

A)  normative issue. 
B)  positive issue. 
C)  political issue, and therefore the techniques of economic analysis are not applicable. 
D)  positive or normative issu 
E)  both normative and positive issues. 
A)  normative issue. 
B)  positive issue. 
C)  political issue, and therefore the techniques of economic analysis are not applicable. 
D)  positive or normative issu 
E)  both normative and positive issues.

Question 12

Exhibit 2A-3  
-A curve shows that every time family income increases by $1, spending increases by $.75. This curve would

Accepted Answer

A)  have a negative slope with decreasing absolute value. 
B)  have a positive slope with increasing absolute value. 
C)  have a negative slope with increasing absolute value. 
D)  have a positive slope with decreasing absolute value. 
E)  be a straight line with a positive slope. 
A)  have a negative slope with decreasing absolute value. 
B)  have a positive slope with increasing absolute value. 
C)  have a negative slope with increasing absolute value. 
D)  have a positive slope with decreasing absolute value. 
E)  be a straight line with a positive slope.

Question 13

Exhibit 2A-2  
-The slope of an inverse relationship

Accepted Answer

A)  must be positive. 
B)  is calculated by dividing the variable on the horizontal axis by the variable on the vertical axis. 
C)  must be negative. 
D)  can never be measured. 
E)  must be constant everywhere along the curve. 
A)  must be positive. 
B)  is calculated by dividing the variable on the horizontal axis by the variable on the vertical axis. 
C)  must be negative. 
D)  can never be measured. 
E)  must be constant everywhere along the curve.

Question 14

Exhibit 2A-7  
-Exhibit 2A-7 shows the relationship between X and Y. The slope of the relationship is

Accepted Answer

A)  positive, and the slope increases with Y. 
B)  positive, and the slope decreases with Y. 
C)  equal to -1. 
D)  negative, and the slope increases with Y. 
E)  negative, and the slope decreases with Y. 
A)  positive, and the slope increases with Y. 
B)  positive, and the slope decreases with Y. 
C)  equal to -1. 
D)  negative, and the slope increases with Y. 
E)  negative, and the slope decreases with Y.

Question 15

All of the following are examples of an economic variable except

Accepted Answer

A)  the amount of income tax that a household has to pay. 
B)  a family's income. 
C)  the price of gasoline. 
D)  an integer 24. 
E)  the number of oil refineries in the United States. 
A)  the amount of income tax that a household has to pay. 
B)  a family's income. 
C)  the price of gasoline. 
D)  an integer 24. 
E)  the number of oil refineries in the United States.

Question 16

Consider a ratio for the total number of miles traveled by car divided by the total number of drivers.
 (A) If bath the total mumber af miles traveled by car and the total number af mivers increase aver time, what must be tue far the ratid ta rise aver time?
(B) If both the tatal number of miles taveled by car and the tatal number af arivers fall aver time, what must be true for the ratid to rise cver time?
(C) If the ratio is not changing aver time, what must be tue about the total number of miles taveled by car and the total number of drvers aver time, and relative to each ather?

Accepted Answer

(A) The total mumber of mules traveled b

Question 17

If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline

Accepted Answer

A)  cannot be determined. 
B)  decreases. 
C)  remains the same. 
D)  increases. 
E)  increases or decreases, depending on the price of automobiles. 
A)  cannot be determined. 
B)  decreases. 
C)  remains the same. 
D)  increases. 
E)  increases or decreases, depending on the price of automobiles.

Question 18

Exhibit 2A-8 $$\begin{array} { | c | c | } 
\hline X & Y \
\hline 25 & 60 \
33 & 69 \
40 & 76 \
42 & 78 \
\hline
\end{array}$$ jT
True/False
-The slope of the relationship between X and Y is positive in Exhibit 2A-8.

Accepted Answer

A) True 
 B)False

Question 19

Exhibit 2A-2  
-The type of chart shown in Exhibit 2A-2 is referred to as a

Accepted Answer

A)  dual-scale diagram. 
B)  time-series graph. 
C)  bar chart. 
D)  pie chart. 
E)  scatter diagram. 
A)  dual-scale diagram. 
B)  time-series graph. 
C)  bar chart. 
D)  pie chart. 
E)  scatter diagram.

Question 20

Explaining why the vehicle miles traveled per person have risen in recent years is one example of what economists do.

Accepted Answer

A) True 
 B)False

Exhibit 2A-3 -In Exhibit 2A-3, the curve shows

"Inflation is a more serious problem than unemployment." This statement is an example of

Causation

Exhibit 2A-2 -Suppose in 2016, on average, 10 million people were unemployed. According to Exhibit 2A-2, how many of these people had been unemployed for less than five weeks?

Economics is a study that

Describe an experiment that you would run to see how market prices are determined. Also be sure to explain where the ceteris paribus assumption is needed.

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.

Whether a nation should have more or less government involvement is basically a

Exhibit 2A-3 -A curve shows that every time family income increases by $1, spending increases by $.75. This curve would

Exhibit 2A-2 -The slope of an inverse relationship

Exhibit 2A-7 -Exhibit 2A-7 shows the relationship between X and Y. The slope of the relationship is

All of the following are examples of an economic variable except

If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline

Exhibit 2A-8 X Y 25 60 33 69 40 76 42 78 jT True/False -The slope of the relationship between X and Y is positive in Exhibit 2A-8.

Exhibit 2A-2 -The type of chart shown in Exhibit 2A-2 is referred to as a

Explaining why the vehicle miles traveled per person have risen in recent years is one example of what economists do.

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters

Exam 2: Observing and Explaining the Economy

Exhibit 2A-3 -In Exhibit 2A-3, the curve shows

"Inflation is a more serious problem than unemployment." This statement is an example of

Causation

Exhibit 2A-2 -Suppose in 2016, on average, 10 million people were unemployed. According to Exhibit 2A-2, how many of these people had been unemployed for less than five weeks?

Economics is a study that

Describe an experiment that you would run to see how market prices are determined. Also be sure to explain where the ceteris paribus assumption is needed.

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.

Whether a nation should have more or less government involvement is basically a

Exhibit 2A-3 -A curve shows that every time family income increases by $1, spending increases by $.75. This curve would

Exhibit 2A-2 -The slope of an inverse relationship

Exhibit 2A-7 -Exhibit 2A-7 shows the relationship between X and Y. The slope of the relationship is

All of the following are examples of an economic variable except

If the price of gasoline decreases but not as much as the decrease in the average price of other goods and services, then the relative price of gasoline

Exhibit 2A-8 X Y 25 60 33 69 40 76 42 78 jT True/False -The slope of the relationship between X and Y is positive in Exhibit 2A-8.

Exhibit 2A-2 -The type of chart shown in Exhibit 2A-2 is referred to as a

Explaining why the vehicle miles traveled per person have risen in recent years is one example of what economists do.

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters