Question 1

FIGURE 2- 4 
-Refer to Figure 2- 4.The slope of the non- linear function changes as we move along the curve.The slope is
A)negative and decreasing,indicating a diminishing marginal response.
B)constant at all points,indicating a constant marginal response.
C)negative and increasing,indicating an increasing marginal response.
D)positive and increasing,indicating an increasing marginal response.
E)positive and decreasing,indicating a diminishing marginal response.

Accepted Answer

As we move along the curve, the slope is positive but decreasing, which indicates a diminishing marginal response.

Question 2

The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Tuition } \
\hline 2008 & \$ 5000 \
\hline 2009 & \$ 5050 \
\hline 2010 & \$ 5100 \
\hline 2011 & \$ 5150 \
\hline 2012 & \$ 5200 \
\hline
\end{array}$$ TABLE 2- 1
-Refer to Table 2- 1.The increase in tuition fees from 2008 to 2012 is
A)100/5000.
B)200/5200.
C)4%.
D)200.
E)0.04%.

Accepted Answer

The answer of The table below shows hypothetical tuition costs...

Question 3

A hypothesis (or a prediction)is a statement about
A)how assumptions affect theories.
B)the relationship between facts explained by the hypothesis.
C)how two or more variables are related to each other.
D)what will happen in the future.
E)those things which we believe to be true,but cannot prove.

Accepted Answer

A hypothesis is a statement that proposes a relationship between two or more variables, which can be tested through research and experimentation.

Question 4

Positively related variables change such that as the value of one variable
A)decreases,the value of the other variable decreases.
B)decreases,the value of the other variable increases.
C)decreases,the value of the other variable remains the same.
D)increases,the value of the other variable decreases.
E)increases,the value of the other variable remains the same.

Accepted Answer

Positively related variables move in the same direction, so if one decreases, the other also decreases.

Question 5

The table below shows hypothetical tuition costs at a Canadian university. $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Tuition } \
\hline 2008 & \$ 5000 \
\hline 2009 & \$ 5050 \
\hline 2010 & \$ 5100 \
\hline 2011 & \$ 5150 \
\hline 2012 & \$ 5200 \
\hline
\end{array}$$ TABLE 2- 1
-When considering how a family's level of consumption changes in response to changes in its income,
A)both of the variables are independent.
B)consumption is the dependent variable and income is the independent variable.
C)income is the dependent variable and family consumption is the independent variable.
D)there is no relationship between the variables.
E)both of the variables are dependent.

Accepted Answer

Consumption is the dependent variable because it is affected by changes in income. Income is the independent variable because it is the cause of the changes in consumption.

Quiz 2: Economic Theories,data,and Graphs

FIGURE 2- 4 -Refer to Figure 2- 4.The slope of the non- linear function changes as we move along the curve.The slope is

A hypothesis (or a prediction) is a statement about

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