Question 1

Zero correlation between two variables implies that ________.

Accepted Answer

A)  both variables move in the same direction 
B)  the variables are not related to each other 
C)  both variables move in the opposite direction 
D)  change in one variable causes the other to change 
A)  both variables move in the same direction 
B)  the variables are not related to each other 
C)  both variables move in the opposite direction 
D)  change in one variable causes the other to change

Question 2

Which of the following statements identifies a difference between correlation and causation?

Accepted Answer

A)  Correlation occurs when one thing directly affects another, whereas causation implies a mutual relationship between two things. 
B)  Correlation implies a mutual relationship between two things, whereas causation occurs when one thing directly affects another. 
C)  A causal relationship exists between two variables when they are correlated, but correlation does not necessarily exist if there's a causal relationship between two variables. 
D)  Causation cannot arise when correlation is present, and correlation cannot arise when causation is present. 
A)  Correlation occurs when one thing directly affects another, whereas causation implies a mutual relationship between two things. 
B)  Correlation implies a mutual relationship between two things, whereas causation occurs when one thing directly affects another. 
C)  A causal relationship exists between two variables when they are correlated, but correlation does not necessarily exist if there's a causal relationship between two variables. 
D)  Causation cannot arise when correlation is present, and correlation cannot arise when causation is present.

Question 3

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Accepted Answer

A)  a zero correlation 
B)  a causal relationship 
C)  a positive correlation 
D)  a negative correlation 
A)  a zero correlation 
B)  a causal relationship 
C)  a positive correlation 
D)  a negative correlation

Question 4

Which of the following is a feature of models?

Accepted Answer

A)  Models are the same as hypotheses. 
B)  Models help in making predictions for the future. 
C)  Models are more complicated than real life phenomena. 
D)  Models are as complex as the phenomenon being studied. 
A)  Models are the same as hypotheses. 
B)  Models help in making predictions for the future. 
C)  Models are more complicated than real life phenomena. 
D)  Models are as complex as the phenomenon being studied.

Question 5

The slope of the line on a line chart measures the rate of change in ________.

Accepted Answer

A)  only the independent variable 
B)  only the dependent variable 
C)  the dependent variable as the independent variable changes 
D)  the independent variable as the dependent variable changes 
A)  only the independent variable 
B)  only the dependent variable 
C)  the dependent variable as the independent variable changes 
D)  the independent variable as the dependent variable changes

Question 6

Which of the following implies that a model is an approximation?

Accepted Answer

A)  The model is not based on any assumption. 
B)  The predictions of the model are mostly wrong. 
C)  The predictions of the model will hold in most cases but not all. 
D)  The predictions of the model cannot be tested with data. 
A)  The model is not based on any assumption. 
B)  The predictions of the model are mostly wrong. 
C)  The predictions of the model will hold in most cases but not all. 
D)  The predictions of the model cannot be tested with data.

Question 7

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

Accepted Answer

A)  $40,000 
B)  $43,850 
C)  $56,225 
D)  $63,950 
A)  $40,000 
B)  $43,850 
C)  $56,225 
D)  $63,950

Question 8

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

Accepted Answer

A key feature of economic and statistica

Question 9

Which of the following relationships is likely to exhibit a negative correlation?

Accepted Answer

A)  The relationship between the amount saved with a bank and the interest earned 
B)  The relationship between the level of professional training and unemployment 
C)  The relationship between inflation in the United States and traffic congestion in China 
D)  The relationship between the amount of precipitation in a year and the number of umbrellas sold 
A)  The relationship between the amount saved with a bank and the interest earned 
B)  The relationship between the level of professional training and unemployment 
C)  The relationship between inflation in the United States and traffic congestion in China 
D)  The relationship between the amount of precipitation in a year and the number of umbrellas sold

Question 10

Which of the following statements correctly differentiates between a model and a hypothesis?

Accepted Answer

A)  Testing a hypothesis does not require data, whereas testing a model requires data. 
B)  Testing a model requires data, whereas testing a hypothesis does not require data. 
C)  A hypothesis can be used to make predictions for the future, whereas a model can only explain the past. 
D)  A model is a simplified representation of reality, whereas hypotheses are a model's predictions. 
A)  Testing a hypothesis does not require data, whereas testing a model requires data. 
B)  Testing a model requires data, whereas testing a hypothesis does not require data. 
C)  A hypothesis can be used to make predictions for the future, whereas a model can only explain the past. 
D)  A model is a simplified representation of reality, whereas hypotheses are a model's predictions.

Question 11

Which of the following is most likely to be an example of causation?

Accepted Answer

A)  The crime rate is high in a country. The literacy rate is high as well. 
B)  A firm producing compact fluorescent light bulbs installs new machinery. Their per-day production of light bulbs increases. 
C)  A soccer player scores four goals when he wears red socks. He concludes that the red socks helped him score the goals. 
D)  A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. 
A)  The crime rate is high in a country. The literacy rate is high as well. 
B)  A firm producing compact fluorescent light bulbs installs new machinery. Their per-day production of light bulbs increases. 
C)  A soccer player scores four goals when he wears red socks. He concludes that the red socks helped him score the goals. 
D)  A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future.

Question 12

Does correlation always imply causation? Why or why not? Explain with the help of real-life examples.

Accepted Answer

No,correlation does not always imply cau

Question 13

Which of the following statements is true?

Accepted Answer

A)  Randomization is not used in medical experiments. 
B)  Randomization allows for the classification of participants according to their choice. 
C)  The subjects in the treatment group and the control group of an experiment are identical in all respects and they are treated identically. 
D)  The subjects in the treatment group and the control group of an experiment are treated identically, except along a single dimension. 
A)  Randomization is not used in medical experiments. 
B)  Randomization allows for the classification of participants according to their choice. 
C)  The subjects in the treatment group and the control group of an experiment are identical in all respects and they are treated identically. 
D)  The subjects in the treatment group and the control group of an experiment are treated identically, except along a single dimension.

Question 14

Which of the following is an example of a natural experiment?

Accepted Answer

A)  A laboratory research on the effectiveness of solar power as an alternative source of fuel 
B)  A research on the effectiveness of a new medicine among some voluntary participants 
C)  A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries 
D)  A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants 
A)  A laboratory research on the effectiveness of solar power as an alternative source of fuel 
B)  A research on the effectiveness of a new medicine among some voluntary participants 
C)  A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries 
D)  A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants

Question 15

A variable is a factor that ________.

Accepted Answer

A)  cannot be measured 
B)  is not affected by changes in other factors 
C)  is independent and cannot be determined 
D)  takes different values at different points of time 
A)  cannot be measured 
B)  is not affected by changes in other factors 
C)  is independent and cannot be determined 
D)  takes different values at different points of time

Question 16

In a hypothetical country,the average wage of five 40-year-old citizens with a college education is $36,896,and the average wage of five 40-year-old citizens with a high school education is $25,864.What is the returns-to-college education in the country? Is there any limitation of this analysis? Explain your answer.

Accepted Answer

Dividing the average salary of 40-year-o

Question 17

Which of the following statements is true?

Accepted Answer

A)  Correlation can only arise when causation is not present. 
B)  Causation can only arise when correlation is not present. 
C)  Correlation arises when there is causation and can also arise when there is no causation. 
D)  Causation arises when there is correlation between two variables and can also arise when there is no correlation. 
A)  Correlation can only arise when causation is not present. 
B)  Causation can only arise when correlation is not present. 
C)  Correlation arises when there is causation and can also arise when there is no causation. 
D)  Causation arises when there is correlation between two variables and can also arise when there is no correlation.

Question 18

The following table shows the monthly wages of five different individuals.
  
-Refer to the table above.What is the average monthly wage?

Accepted Answer

A)  $450 
B)  $558 
C)  $612 
D)  $650 
A)  $450 
B)  $558 
C)  $612 
D)  $650

Question 19

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

Accepted Answer

A)  $500 
B)  $400 
C)  $250 
D)  $700 
A)  $500 
B)  $400 
C)  $250 
D)  $700

Question 20

Which of the following is most likely to be represented by a time series graph?

Accepted Answer

A)  The relationship between hourly wages and a worker's productivity 
B)  The growth in consumer income over 5 years 
C)  The contribution of each sector to the total output of an economy 
D)  The different sources of tax revenue for the government 
A)  The relationship between hourly wages and a worker's productivity 
B)  The growth in consumer income over 5 years 
C)  The contribution of each sector to the total output of an economy 
D)  The different sources of tax revenue for the government

Zero correlation between two variables implies that ________.

Which of the following statements identifies a difference between correlation and causation?

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Which of the following is a feature of models?

The slope of the line on a line chart measures the rate of change in ________.

Which of the following implies that a model is an approximation?

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

Which of the following relationships is likely to exhibit a negative correlation?

Which of the following statements correctly differentiates between a model and a hypothesis?

Which of the following is most likely to be an example of causation?

Does correlation always imply causation? Why or why not? Explain with the help of real-life examples.

Which of the following statements is true?

Which of the following is an example of a natural experiment?

A variable is a factor that ________.

Which of the following statements is true?

The following table shows the monthly wages of five different individuals. -Refer to the table above.What is the average monthly wage?

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

Which of the following is most likely to be represented by a time series graph?

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Exam 2: Economic Methods and Economic Questions

Zero correlation between two variables implies that ________.

Which of the following statements identifies a difference between correlation and causation?

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Which of the following is a feature of models?

The slope of the line on a line chart measures the rate of change in ________.

Which of the following implies that a model is an approximation?

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

Which of the following relationships is likely to exhibit a negative correlation?

Which of the following statements correctly differentiates between a model and a hypothesis?

Which of the following is most likely to be an example of causation?

Does correlation always imply causation? Why or why not? Explain with the help of real-life examples.

Which of the following statements is true?

Which of the following is an example of a natural experiment?

A variable is a factor that ________.

Which of the following statements is true?

The following table shows the monthly wages of five different individuals. -Refer to the table above.What is the average monthly wage?

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

Which of the following is most likely to be represented by a time series graph?

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters