Question 1

A road map is like an economic model, because it provides us with:

Accepted Answer

A)  all the details of the real world. 
B)  an analysis with no resemblances with the real world. 
C)  an analysis of the real world. 
D)  an abstraction of the real world. 
A)  all the details of the real world. 
B)  an analysis with no resemblances with the real world. 
C)  an analysis of the real world. 
D)  an abstraction of the real world.

Question 2

If your nominal income has increased by 2 per cent in one year, while the inflation rate for the same year is 3 per cent, you can conclude that your real income:

Accepted Answer

A)  has increased by 1% approximately. 
B)  has decreased by 1% approximately. 
C)  has remained constant. 
D)  has either increased or decreased by 1% 
A)  has increased by 1% approximately. 
B)  has decreased by 1% approximately. 
C)  has remained constant. 
D)  has either increased or decreased by 1%

Question 3

Describe the different forms in which data are available to economic researchers.

Accepted Answer

First, some data come in time-series for

Question 4

Explain the meaning of a quantity or price index.

Accepted Answer

An index is a composite of individual se

Question 5

Nominal income is the real income divided by the price index.

Accepted Answer

A) True 
 B)False

Question 6

Economic theories are worthless unless they are verified through scientific testing and hold true under all circumstances.

Accepted Answer

A) True 
 B)False

Question 7

A rising average price level does not mean that all prices in the economy are rising.

Accepted Answer

A) True 
 B)False

Question 8

CANSIM database, which is managed by Statistics Canada, is the most comprehensive source of data in Canada.

Accepted Answer

A) True 
 B)False

Question 9

Table 2.2
-The price index in 2002 was:

Accepted Answer

A)  100 
B)  105 
C)  115 
D)  none of the above 
A)  100 
B)  105 
C)  115 
D)  none of the above

Question 10

Why are economists frequently portrayed as being individuals who act only out of their own self-interest?

Accepted Answer

Economists believe that individuals gene

Question 11

Consider a negatively sloped linear line in a graph where the vertical axis represents variable Y and the horizontal axis represents variable X. The slope of the horizontal linear curve is zero.

Accepted Answer

A) True 
 B)False

Question 12

If the CPI for 2005 was 284.1, and economists predicted an inflation rate of 3.5 per cent for 2006, the predicted CPI at the end of 2006 was:

Accepted Answer

A)  287.1. 
B)  290.1. 
C)  297.5. 
D)  294.1. 
A)  287.1. 
B)  290.1. 
C)  297.5. 
D)  294.1.

Question 13

Table 2.2
-Jim's weekly nominal income in 2003 was:

Accepted Answer

A)  $440 
B)  $460 
C)  $462 
D)  none of the above 
A)  $440 
B)  $460 
C)  $462 
D)  none of the above

Question 14

Assumptions are used in economic theories in order to simplify the theory.

Accepted Answer

A) True 
 B)False

Question 15

Economic theories, like physics or chemistry, can be tested in a laboratory environment.

Accepted Answer

A) True 
 B)False

Question 16

Evaluate the following criticism of economic models: 'Economic models always work with linear functions, and are therefore too simple to be useful or meaningful.'

Accepted Answer

Linear descriptions of supply and demand

Question 17

Table 2.1
-Using Table 2.1, in 1977 the greatest share of household income was spent on:

Accepted Answer

A)  bluars. 
B)  widgets. 
C)  zaflings. 
D)  skylids. 
A)  bluars. 
B)  widgets. 
C)  zaflings. 
D)  skylids.

Question 18

The slope of a line measures its steepness.

Accepted Answer

A) True 
 B)False

Question 19

A basket of goods in 1987 cost $783, while the value of the same basket in 1997 was $1133. The value of this price index in 1997, based on 1987 = 100, was:

Accepted Answer

A)  144.7. 
B)  242. 
C)  69.1. 
D)  117.4. 
A)  144.7. 
B)  242. 
C)  69.1. 
D)  117.4.

Question 20

When economists use cross-section data, they collect and analyze information about the same economic variable at different points in time.

Accepted Answer

A) True 
 B)False

A road map is like an economic model, because it provides us with:

If your nominal income has increased by 2 per cent in one year, while the inflation rate for the same year is 3 per cent, you can conclude that your real income:

Describe the different forms in which data are available to economic researchers.

Explain the meaning of a quantity or price index.

Nominal income is the real income divided by the price index.

Economic theories are worthless unless they are verified through scientific testing and hold true under all circumstances.

A rising average price level does not mean that all prices in the economy are rising.

CANSIM database, which is managed by Statistics Canada, is the most comprehensive source of data in Canada.

Table 2.2 -The price index in 2002 was:

Why are economists frequently portrayed as being individuals who act only out of their own self-interest?

Consider a negatively sloped linear line in a graph where the vertical axis represents variable Y and the horizontal axis represents variable X. The slope of the horizontal linear curve is zero.

If the CPI for 2005 was 284.1, and economists predicted an inflation rate of 3.5 per cent for 2006, the predicted CPI at the end of 2006 was:

Table 2.2 -Jim's weekly nominal income in 2003 was:

Assumptions are used in economic theories in order to simplify the theory.

Economic theories, like physics or chemistry, can be tested in a laboratory environment.

Evaluate the following criticism of economic models: 'Economic models always work with linear functions, and are therefore too simple to be useful or meaningful.'

Table 2.1 -Using Table 2.1, in 1977 the greatest share of household income was spent on:

The slope of a line measures its steepness.

A basket of goods in 1987 cost $783, while the value of the same basket in 1997 was $1133. The value of this price index in 1997, based on 1987 = 100, was:

When economists use cross-section data, they collect and analyze information about the same economic variable at different points in time.

Introduction to Key Ideas

The Classical Marketplace Demand and Supply

Economic Activity and Performance

Output, Business Cycles, Growth Employment

Aggregate Expenditure Aggregate Demand

The Government Sector

Money, Banking Money Supply

Financial Markets, Interest Rates, Foreign Exchange Rates & AD

Central Banking and Monetary Policy

A Traditional Ad As Model

An AD As Model of the Inflation Rate and Real GDP

Economic Growth

International Macroeconomics

International Trade

Filters

Exam 2: Theories, Models and Data

A road map is like an economic model, because it provides us with:

If your nominal income has increased by 2 per cent in one year, while the inflation rate for the same year is 3 per cent, you can conclude that your real income:

Describe the different forms in which data are available to economic researchers.

Explain the meaning of a quantity or price index.

Nominal income is the real income divided by the price index.

Economic theories are worthless unless they are verified through scientific testing and hold true under all circumstances.

A rising average price level does not mean that all prices in the economy are rising.

CANSIM database, which is managed by Statistics Canada, is the most comprehensive source of data in Canada.

Table 2.2 -The price index in 2002 was:

Why are economists frequently portrayed as being individuals who act only out of their own self-interest?

Consider a negatively sloped linear line in a graph where the vertical axis represents variable Y and the horizontal axis represents variable X. The slope of the horizontal linear curve is zero.

If the CPI for 2005 was 284.1, and economists predicted an inflation rate of 3.5 per cent for 2006, the predicted CPI at the end of 2006 was:

Table 2.2 -Jim's weekly nominal income in 2003 was:

Assumptions are used in economic theories in order to simplify the theory.

Economic theories, like physics or chemistry, can be tested in a laboratory environment.

Evaluate the following criticism of economic models: 'Economic models always work with linear functions, and are therefore too simple to be useful or meaningful.'

Table 2.1 -Using Table 2.1, in 1977 the greatest share of household income was spent on:

The slope of a line measures its steepness.

A basket of goods in 1987 cost $783, while the value of the same basket in 1997 was $1133. The value of this price index in 1997, based on 1987 = 100, was:

When economists use cross-section data, they collect and analyze information about the same economic variable at different points in time.

Introduction to Key Ideas

The Classical Marketplace Demand and Supply

Economic Activity and Performance

Output, Business Cycles, Growth Employment

Aggregate Expenditure Aggregate Demand

The Government Sector

Money, Banking Money Supply

Financial Markets, Interest Rates, Foreign Exchange Rates & AD

Central Banking and Monetary Policy

A Traditional Ad As Model

An AD As Model of the Inflation Rate and Real GDP

Economic Growth

International Macroeconomics

International Trade

Filters