Question 1

Data collected of several variables but for the same time period are called

Accepted Answer

A)   time-series data.
B)   logarithmic data.
C)   topographic data.
D)   cross-sectional data.
E)   time-analysis data.F) A) and B)
G) A) and E)

Question 2

Suppose an economist tells you that, on average, people in Canada have too much personal debt.This is an example of a(n)  statement.

Accepted Answer

A)   normative
B)   independent
C)   autonomous
D)   positive
E)   inducedF) B) and C)
G) C) and E)

Question 3

When it is said that variable A depends on variable B, then A is

Accepted Answer

A)   a function of B.
B)   independent of B.
C)   proportional to B.
D)   a derivative of B.
E)   partially exclusive of B.F) B) and D)
G) C) and D)

Question 4

The table below shows hypothetical tuition costs at a Canadian university.  TABLE 2-1
-Refer to Table 2-1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is

Accepted Answer

A)   96
B)   1.04
C)   0.96
D)   100
E)   104F) A) and B)
G) A) and C)

Question 5

Suppose point A represents coordinates (X = 5, Y = 6)  and point B represents coordinates (X = 2, Y= 3) . Then the slope of the straight line joining points A and B is

Accepted Answer

A)   -1.
B)   2/3.
C)   5/6.
D)   1.
E)   3/2.F) B) and C)
G) A) and E)

Question 6

A normative statement

Accepted Answer

A)   is one that involves a value judgment.
B)   has no place in the study and practice of economics.
C)   concerns what is provable.
D)   can be derived logically from facts.
E)   is a statement that is empirically testable.F) D) and E)
G) None of the above

Question 7

A positive statement is one that states

Accepted Answer

A)   non-negative numbers.
B)   what is desirable.
C)   what is, was, or will be.
D)   what is and what should be.
E)   what should be but is not.F) C) and D)
G) A) and D)

Question 8

When comparing the magnitude of changes in variables with different scales it is best to

Accepted Answer

A)   express each variable as an index number.
B)   use only time-series data.
C)   express each variable as a logarithmic number.
D)   compare the absolute data on each variable.
E)   compare the relative data on each variable.F) A) and E)
G) B) and D)

Question 9

Economic theories

Accepted Answer

A)   can be used to help explain and predict economic behaviour.
B)   cannot be tested because we cannot do economic "experiments".
C)   must apply to all economies to be true.
D)   are not useful because of the unrealistic assumptions they contain.
E)   cannot help to predict future behaviour.F) A) and E)
G) A) and B)

Question 10

Negatively related variables change such that as the value of one variable

Accepted Answer

A)   increases, the value of the other decreases.
B)   decreases, the value of the other variable decreases.
C)   decreases, the value of the other variable remains the same.
D)   increases, the value of the other variable remains the same.
E)   increases, the value of the other variable increases.F) B) and E)
G) A) and B)

Question 11

Suppose point A represents co-ordinates (X=10, Y=12)  and point B represents co-ordinates (X=5, Y=7) . The slope of the straight line joining points A and B is

Accepted Answer

A)   2/3.
B)   -1.
C)   3/2.
D)   1.
E)   5/6.F) C) and E)
G) B) and E)

Question 12

The table below shows hypothetical tuition costs at a Canadian university.  TABLE 2-1
-Refer to Table 2-1. The increase in tuition from 2005 to 2009 is:

Accepted Answer

A)   4 percent.
B)   100/5000.
C)   200.
D)   0.04 percent.
E)   200/5200.F) C) and E)
G) All of the above

Question 13

The slope of a straight line is necessarily

Accepted Answer

A)   negative.
B)   zero.
C)   positive.
D)   constant.
E)   increasing as one moves up the line.F) A) and B)
G) B) and E)

Question 14

Suppose that a particular theory predicts that on sunny days consumption of ice cream will riseand that on cloudy days consumption of ice cream will fall. If an economist tests this theory andfinds that over a six-month period the theory predicts accurately, the economist would likely say

Accepted Answer

A)   the evidence fails to reject the theory.
B)   the theory has been proven correct.
C)   the theory is always reliable.
D)   that the theory is not useful because consumption involves irrational human behaviour.
E)   the theory shouldn't be taken seriously.F) All of the above
G) B) and E)

Question 15

The mathematical expression of a relationship between two or more variables is usually known as

Accepted Answer

A)   a theory.
B)   a function.
C)   a definition.
D)   an observation.
E)   an assumption.F) C) and D)
G) A) and E)

Question 16

Positive statements

Accepted Answer

A)   are seldom employed in social sciences like economics.
B)   have been verified by appeal to factual evidence.
C)   have no place in economics because economics deals only with value judgments.
D)   are falsifiable in principle by appeal to factual evidence.
E)   form the basis of all normative arguments.F) A) and E)
G) B) and C)

Question 17

Suppose an economist tells you that the unemployment rate in Canada last year was 7.8 percent.This is an example of a(n)  statement.

Accepted Answer

A)   autonomous
B)   positive
C)   induced
D)   imputed
E)   normativeF) A) and B)
G) D) and E)

Question 18

Which of the following is a normative statement?

Accepted Answer

A)   Tuition fees should be waived for low-income students.
B)   A free-trade agreement between two countries will result in an increase in trade.
C)   The higher is the level of taxes, the higher are wage demands.
D)   A reduction in export taxes on petroleum would result in higher wages.
E)   The higher is the level of taxes, the lower is consumption spending.F) A) and C)
G) None of the above

Question 19

On a coordinate graph, what is the Y intercept of the function X = 60 + 3Y?

Accepted Answer

A)   60
B)   3.0
C)   0.1
D)   -20
E)   20F) All of the above
G) B) and D)

Question 20

An unweighted index number

Accepted Answer

A)   has different weights for each data series depending on importance.
B)   has equal weights attached to different data series.
C)   has no weights attached to different data series.
D)   is not a real index number.
E)   can only be used for price indexes.F) A) and E)
G) B) and E)

Exam 2: Economic Theories, Data, and Graphs

The table below shows hypothetical tuition costs at a Canadian university. TABLE 2-1 -Refer to Table 2-1. Assume that 2005 is used as the base year, with the index number = 100. The value of the index number in 2009 is

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The slope of a straight line is necessarily

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A normative statement

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Suppose point A represents coordinates (X = 5, Y = 6) and point B represents coordinates (X = 2, Y= 3) . Then the slope of the straight line joining points A and B is

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Suppose an economist tells you that, on average, people in Canada have too much personal debt.This is an example of a(n) statement.

Correct AnswerverifiedShow Answer

The table below shows hypothetical tuition costs at a Canadian university. TABLE 2-1 -Refer to Table 2-1. The increase in tuition from 2005 to 2009 is:

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Suppose an economist tells you that the unemployment rate in Canada last year was 7.8 percent.This is an example of a(n) statement.

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Which of the following is a normative statement?

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When comparing the magnitude of changes in variables with different scales it is best to

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An unweighted index number

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Data collected of several variables but for the same time period are called

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Suppose point A represents co-ordinates (X=10, Y=12) and point B represents co-ordinates (X=5, Y=7) . The slope of the straight line joining points A and B is

Correct AnswerverifiedShow Answer

Negatively related variables change such that as the value of one variable

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Economic theories

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On a coordinate graph, what is the Y intercept of the function X = 60 + 3Y?

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A positive statement is one that states

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When it is said that variable A depends on variable B, then A is

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The mathematical expression of a relationship between two or more variables is usually known as

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Positive statements

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Suppose that a particular theory predicts that on sunny days consumption of ice cream will riseand that on cloudy days consumption of ice cream will fall. If an economist tests this theory andfinds that over a six-month period the theory predicts accurately, the economist would likely say

Correct AnswerverifiedShow Answer

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