Question 1

Which of the following statements correctly indicates a property of good economic questions?
A) A good economic question should always be easy to answer.
B) A good economic question should always be positive and not normative.
C) A good economic question must always include arithmetic calculations and graphical solutions.
D) A good economic question addresses topics that are important to economic agents and/or to society.

Accepted Answer

A good economic question should be relevant to economic agents and/or society to provide useful insights for decision-making. It does not necessarily have to be easy to answer, require arithmetic calculations or graphical solutions. Additionally, it can be positive or normative, as long as it has practical significance.

Question 2

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.
A) pie chart
B) time series graph
C) histogram
D) bar chart

Accepted Answer

A time series graph plots the values of a variable against time, making it the most useful choice when the objective is to understand the changes in the attributes of a variable on a month-to-month basis. It allows for the visualization of trends, patterns, and seasonality. Pie charts, histograms, and bar charts are not suitable for displaying data over time.

Question 3

A circular chart split into segments to show the percentages of parts relative to the whole is called ________.
A) a histogram
B) a time-series graph
C) a pie chart
D) a bar chart

Accepted Answer

A pie chart is specifically designed to display percentages of a whole in a circular format, making it the best choice for this type of data visualization. A histogram is used to show the distribution of data in specific intervals, a time-series graph shows how a variable changes over time, and a bar chart displays data as bars of different heights or lengths for easy comparison of values.

Question 4

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?
A) A bar chart
B) A pie chart
C) A histogram chart
D) A time-series graph

Accepted Answer

A pie chart is the best graphical representation for showing the distribution of a household's income among various categories of expenses in terms of percentages because it shows each category's share of the whole, allowing for easy comparison of the percentage of income that goes to each expense category. A bar chart could also be used for this purpose, but a pie chart is more effective for visualizing percentages. Histogram charts and time-series graphs are not appropriate for this type of data.

Question 5

Which of the following graphical representations is ideal for comparing a single variable across different groups?
A) A histogram
B) A bar chart
C) A scatter plot
D) A time series graph

Accepted Answer

A bar chart is the ideal graphical representation for comparing a single variable across different groups as it clearly displays the differences between groups. Each group is represented by a separate bar, and the height of the bar represents the value of the variable. This allows for easy comparison between groups. The other options (histogram, scatter plot, time series graph) are not ideal for comparing a single variable across different groups as they either display the distribution of a variable (histogram), the relationship between two variables (scatter plot), or changes in a variable over time (time series graph).

Question 6

A variable that is potentially affected by an experimental treatment is referred to as a(n)________.
A) omitted variable
B) independent variable
C) dependent variable
D) compulsory variable

Accepted Answer

The dependent variable is the variable that is being measured and potentially affected by the experimental treatment. It is called "dependent" because its values depend on the values of the independent variable. A is incorrect because an omitted variable is a variable that was not included in the analysis, and therefore its impact cannot be analyzed. B is incorrect because the independent variable is the variable that is manipulated or controlled by the experimenter, and its values are not affected by the dependent variable. D is not a commonly used term in experimental research.

Question 7

Which of the following is a property of a good economic question?
A) A good economic question can be answered.
B) A good economic question should always have a single solution.
C) A good economic question always addresses topics that are important to the whole society and not to an individual economic agent.
D) A good economic question should never incorporate elements from disciplines other than economics.

Accepted Answer

A good economic question should be able to be answered through economic analysis and methods. It should not be too broad or too narrow and should be precise and specific enough to be able to be answered within the context of economics.

Answer: C 
 A good economic question should address topics that are relevant and important to society as a whole, not just an individual agent. Economic questions that have the potential to impact many individuals or society as a whole are more likely to be considered good economic questions.

Therefore, the correct answer will be (A, C).

Question 8

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 9

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 ________.
A) $20
B) $0.044
C) $22.5
D) $30.33

Accepted Answer

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

Question 10

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

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. The slope tells us how much the dependent variable changes for a unit change in the independent variable.

Question 11

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 ________.
A) change in consumption plus change in income
B) change in consumption minus change in income
C) change in consumption multiplied by change in income
D) change in consumption divided by change in income

Accepted Answer

The slope of a line chart represents the rate of change between the two variables being measured. In this case, it represents the rate of change in consumption with respect to income. Therefore, the slope is calculated by dividing the change in consumption by the change in income, making the correct choice D).

Question 12

Which of the following statements is true?
A) A bar chart has many limitations in comparison to pie charts.
B) A bar chart does not allow for the comparison of a single variable across many segments.
C) A bar chart can only be used to represent independent variables.
D) A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths.

Accepted Answer

A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths. Bar charts are effective ways to compare multiple variables or groups within a single variable, making option B incorrect. Bar charts can be used for both independent and dependent variables, making option C incorrect. While pie charts have their own advantages, they also have limitations such as difficulty in comparing multiple variables, making option A incorrect.

Question 13

An independent variable ________.
A) cannot be measured
B) cannot be represented on a bar chart
C) is manipulated by the experimenter in an experiment
D) is determined by the other variables in an experiment

Accepted Answer

An independent variable is a variable that the experimenter manipulates in an experiment to observe its effect on the dependent variable. Therefore, option C is the correct statement. Options A and D are incorrect as independent variables can be measured and are not determined by other variables in an experiment. Option B is also incorrect as independent variables can be represented on a bar chart.

Question 14

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

Accepted Answer

A time series graph is used to represent data that changes over time. Option B, the growth in consumer income over 5 years, is the only choice that changes over time and would therefore be best represented by a time series graph. Options A, C, and D are better suited to other types of graphs, such as scatter plots or stacked bar charts.

Quiz 2: Economic Methods and Economic Questions

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

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.

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

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?

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

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

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

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?

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 ________.

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

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 ________.

Which of the following statements is true?

An independent variable ________.

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