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

Accepted Answer

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

Question 4

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

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 ________.
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 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?
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 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?
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. 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?
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 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)________.
A) omitted variable
B) independent variable
C) dependent variable
D) compulsory variable

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

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?
A) A histogram
B) A bar chart
C) A scatter plot
D) A time series graph

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?
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 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

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?

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

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 ________.

An independent variable ________.

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.

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 is a property of a good economic question?

Which of the following statements is true?

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?

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

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

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

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

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