Exam 2: Theories, Models and Data

The reason that economists often use a scatter diagram in their analysis is that:

Table 2.1 -Table 2.1 shows the prices and quantities purchased of four different goods by the typical household in 1977 and 1997. Using 1977 as the base year, the value of the consumer price index in 1977 was:

Which one of the following statements is false?

Road fatalities have increased in recent decades in Canada.

In order for an economic model to be valid:

Consider a negatively sloped linear line in a graph where the vertical axis represents variable Y and the horizontal axis represents variable X. If the vertical intercept is 10 and the slope is -0.5, the correct equation is:

When economists make predictions using the framework of a given economic model, it is usually based on:

Product prices, consumer income, and the level of employment:

The primary reason why economists use models in their analysis is because a model:

The nominal value of an economic variable is:

Other things equal, suppose that the general level of prices decreases. You would be correct if you concluded that the real value of your income:

When a negative relationship exists between x and y,:

The real value of an economic variable is:

Suppose that the consumer price index has a value of 87 (1980 = 100) for 1987. This means that:

Which one of the following will not usually be included in an economic theory?

Suppose that in 2006, the CPI was 285, (1982 = 100). This index shows that the real value of a dollar in 2006:

The use of economic models means economists believe that:

Why is there often disagreement amongst economists?

Which one of the following statements does not characterize an economic model?

Pieces of evidence about economic behaviour are: