Grades are independent variables.
b.
A negative relationship exists between studying and grades.
c.
A positive relationship exists between studying and grades.
d.
Grades are not dependent variables.
ANSWER:
c
Figure 1-1
257. Refer to Figure 1-1. Which of the following is true regarding the upward-sloping line AB?
a.
An increase in the value of X will decrease the value of Y.
b.
There is an inverse relationship between X and Y.
c.
A decrease in the value of X will decrease the value of Y.
d.
X and Y are unrelated.
ANSWER:
c
258. The main concern of economics is to study how well the stock markets are performing.
a.
True
b.
False
ANSWER:
False
259. Economics has much in common with sociology because it is concerned with how societies organize themselves. However, economics shares little in common with political science, psychology, or anthropology.
a.
True
b.
False
ANSWER:
False
260. One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth, and unemployment.
a.
True
b.
False
ANSWER:
True
261. Macroeconomics is the branch of economics in which you study inflation and unemployment in the economy.
a.
True
b.
False
ANSWER:
True
262. Macroeconomics explores the allocation of scarce resources from the perspective of small economic units such as consumers and firms.
a.
True
b.
False
ANSWER:
False
263. Economic theories are of limited use since they cannot be tested empirically.
a.
True
b.
False
ANSWER:
False
264. A hypothesis is a positive statement.
a.
True
b.
False
ANSWER:
True
265. An untestable proposition that guesses how people will react to changed circumstances is called a hypothesis.
a.
True
b.
False
ANSWER:
False
266. A good economic theory should capture as many details about real-world behaviour as possible.
a.
True
b.
False
ANSWER:
False
267. Economists typically use controlled experiments to learn about how the economy functions.
a.
True
b.
False
ANSWER:
False
268. Ceteris paribus is a Latin expression that means "holding nothing constant."
a.
True
b.
False
ANSWER:
False
269. Correlation is when one event causes another to occur.
a.
True
b.
False
ANSWER:
False
270. The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals as a group.
a.
True
b.
False
ANSWER:
True
271. Normative analysis focuses on statements that can be tested against real-world data.
a.
True
b.
False
ANSWER:
False
272. To be a positive economic statement, an assertion must be factual.
a.
True