Question 1

Table 1-8
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Flat-Panel } \
\text { TV Sets } \
\text { (millions) }
\end{array} \
\hline 2007 & 1.0 \
\hline 2008 & 1.5 \
\hline 2009 & 7.3 \
\hline 2010 & 12.7 \
\hline 2011 & 20.0 \
\hline
\end{array}$$
-Refer to Table 1-8.The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1-8
 \[\begin{array} { | c |...

Question 2

The number of people who have gray hair is very high among residents living in Florida.A student concludes that living in Florida causes hair to turn gray.What is the flaw in this student's reasoning?
A)The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents.
B)The student is using an inadequate sample size.
C)The student is drawing a false conclusion; he is confusing cause and effect.
D)The student has failed to take into account other causes of gray hair.

Accepted Answer

The student is drawing a false conclusion by assuming that living in Florida causes gray hair, without considering the possibility that the high number of gray-haired residents could be due to natural aging or other factors. The student is confusing cause and effect, as gray hair may be a result of various factors such as genetics, stress, or medical conditions, rather than a direct result of living in Florida.

Question 3

You explain to your friend Haslina,who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices.She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales.How would you respond to Haslina?
A)Haslina is right; she has evidence to back her claim.The theory must be erroneous.
B)I will explain to her that she is making the error of reverse causality: it is the increase in demand that has enabled her to raise her prices
C)I will explain to her that there are some omitted variables that have contributed to an increase in her sales such as changes in income.
D)Haslina is making the mistake of assuming that correlation implies causation.

Accepted Answer

Haslina may be overlooking or not accounting for other factors that contribute to the increase in sales. In this case, changes in consumer income could be playing a role. It is possible that as incomes rise, individuals are willing to spend more on catered meals, regardless of the price increase. Thus, the theory still holds true despite Haslina's experience.

Question 4

Table 1-7
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { DVD } \
\text { Recorders } \
\text { (millions) }
\end{array} \
\hline 2007 & 12.5 \
\hline 2008 & 14.0 \
\hline 2009 & 17.2 \
\hline 2010 & 20.0 \
\hline 2011 & 21.7 \
\hline
\end{array}$$
-Refer to Table 1-7.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1-7
 \[\begin{array} { | c |...

Quiz 1: Economics: Foundations and Models

The number of people who have gray hair is very high among residents living in Florida.A student concludes that living in Florida causes hair to turn gray.What is the flaw in this student's reasoning?