Question 1

Which of the following graphical representations can be used most appropriately to show the distribution of a household's income,in terms of percentages,among the various categories of expenses?

Accepted Answer

A pie chart is the best representation to show the distribution of a household's income in terms of percentages among different categories of expenses. It allows for easy visualization of the proportions of each category in relation to the whole income. A bar chart is suitable if the aim is to compare the absolute values of expenses among different categories. A histogram chart is suitable to show the distribution of a continuous variable, such as income or age, into different intervals or bins. A time-series graph is suitable to show changes in a variable over time.

Question 2

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

Accepted Answer

The slope of the line on a line chart measures the rate of change in the dependent variable as the independent variable changes. This means that as the independent variable (such as time) increases, the slope of the line represents how much the dependent variable (such as sales or temperature) is changing. Therefore, option C is the correct choice.

Question 3

As the number of billboards for a firm's product increases from 100 to 500,its sales increase from $1,000 to $10,000.If this information is plotted on a line chart,the slope of the line equals ________.

Accepted Answer

The answer of As the number of billboards for a...

Question 4

An independent variable ________.

Accepted Answer

An independent variable is a variable that the experimenter manipulates or changes in an experiment. Therefore, option C is the correct choice. Option A is incorrect because an independent variable can be measured. Option B is incorrect because an independent variable can be represented on a bar chart. Option D is incorrect because an independent variable determines the outcomes of other variables in an experiment, but it itself is not determined by other variables.

Question 5

When the objective of an experiment or a study is to understand the changes in the attributes of a variable on a month-to-month basis,a ________ is most useful.

Accepted Answer

A time series graph is specifically designed to show changes in a variable over time, making it the most useful choice for studying changes on a month-to-month basis. Pie charts, histograms, and bar charts are better suited for showing the distribution of data or comparing different categories, rather than tracking changes over time.

Question 6

On a line chart,the income of a consumer is measured along the horizontal axis,and his consumption is measured along the vertical axis.The slope of the line is equal to ________.

Accepted Answer

The slope of a line is equal to the change in the vertical variable (in this case, consumption) divided by the change in the horizontal variable (income). Therefore, the correct choice is D, change in consumption divided by change in income.

Question 7

Which of the following is a property of a good economic question?

Accepted Answer

A good economic question should be able to be answered with data and analysis. It does not necessarily have to have a single solution, as many economic questions can have multiple solutions or trade-offs. It can address topics important to an individual or a group, but it should ultimately have broader implications for the economy or society as a whole. It may also incorporate elements from other disciplines, as economics often intersects with fields like psychology, sociology, and political science.

Question 8

Which of the following statements is true?

Accepted Answer

A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths. Option A is false because both bar and pie charts have their own limitations. Option B is false because a bar chart allows for the comparison of a single variable across many segments. Option C is false because a bar chart can represent both independent and dependent variables.

Question 9

Suppose a pharmaceutical company wants to test the effectiveness of a new drug in curing cancer.Which approach should it use to test whether the new drug is more effective than existing medicines that are widely used?

Accepted Answer

The answer of Suppose a pharmaceutical company wants to test...

Question 10

Which of the following statements correctly indicates a property of good economic questions?

Accepted Answer

A good economic question should be relevant to economic agents and society as a whole. It should focus on topics that are important and have implications for decision making. Option A is incorrect because a good economic question may require extensive research and analysis, making it difficult to answer. Option B is incorrect because normative questions involve value judgments and cannot be answered objectively, while positive questions rely on empirical evidence. Option C is incorrect because not all economic questions require arithmetic calculations or graphical solutions, although these tools may be helpful in addressing some questions.

Question 11

A variable that is potentially affected by an experimental treatment is referred to as a(n)________.

Accepted Answer

The dependent variable is the variable that is potentially affected by the experimental treatment, whereas the independent variable is the variable that is manipulated by the researcher. The omitted variable is a variable that should have been included in the analysis but was not, and there is no such term as compulsory variable in experimental design. Therefore, the best choice is C.

Question 12

A circular chart split into segments to show the percentages of parts relative to the whole is called ________.

Accepted Answer

A pie chart is specifically designed for showing relative proportions or percentages of a whole. A histogram is used to represent the distribution of continuous numerical data, a time-series graph is used to display data changes over time, and a bar chart is used for comparing different categories or groups.

Question 13

Which of the following graphical representations is ideal for comparing a single variable across different groups?

Accepted Answer

A bar chart is the ideal choice for comparing a single variable across different groups as it displays categorical data with rectangular bars. It allows for easy comparison between groups by comparing the length or height of the bars. Histograms are used to display continuous data and can also show the distribution of data, while scatter plots display the relationship between two variables. Time series graphs are used to display changes over time.

Question 14

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

Accepted Answer

A time series graph tracks the changes in a variable over time. Option B, the growth in consumer income over 5 years, fits this definition best. Option A relates two variables and could be better represented with a scatterplot. Option C could be better represented with a stacked bar chart. Option D could be better represented with a pie chart or a stacked bar chart.

Quiz 2: Economic Methods and Economic Questions