43) Correlation means
A) holding everything else constant.
B) after this, therefore because of this.
C) the values of two variables move in a predictable and related way.
D) making statements about how the world should be.
E) the same as causation.
Answer: C
Topic: Correlation
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
44) In examining two variables, we find that as one variable changes, the other changes. These variables are said to be
A) independent.
B) correlated.
C) statistics.
D) significantly related.
E) casually related.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
45) When economists use the term "correlation," they are referring to
A) cause and effect relationships between variables.
B) how two variables move together in a predictable way.
C) positive economics.
D) normative economics.
E) economic policy.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
46) The tendency for the values of two variables to move in a predictable and related way is known as
A) a natural experiment.
B) a normative relationship.
C) an economic model.
D) correlation.
E) a policy relationship.
Answer: D
Topic: Correlation
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
47) A positive statement
i. makes a statement about how the world operates.
ii. is a true statement.
iii. can be tested against the facts.
A) i and ii
B) i and iii
C) ii and iii
D) i, ii and iii
E) i only
Answer: B
Topic: Positive statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
48) Which of the following is a positive statement?
A) An increase in college tuition is not fair to students.
B) A recession leads to higher enrollments at universities.
C) University bookstore prices are too high.
D) Parking tickets on campus impose an excessive fee.
E) The school needs more parking for students.
Answer: B
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
49) The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a
A) normative statement.
B) positive statement.
C) macroeconomic statement.
D) rational-decision statement.
E) marginal statement.
Answer: B
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
50) "Lower ticket prices would lead to more people attending ballgames." This statement is a
A) statement assessing the social interest versus the private interest.
B) normative statement.
C) positive statement.
D) macroeconomic statement.
E) statement that confuses marginal cost and sunk cost.
Answer: C
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
51) A statement that argues that "if taxes on gasoline increase, gasoline consumption will decrease" is an example of what kind of statement?
A) a marginal statement
B) a macroeconomic statement
C) a normative statement
D) a positive statement
E) a statement that violates rational choice
Answer: D
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
52) Which of the following statements is a positive statement?
A) Our country must increase military spending.
B) There should be a computer in every elementary school classroom.
C) We need to spend less on luxury items for the wealthy, and more on necessities for the less fortunate.
D) Online shopping increased by 50 percent this Christmas season.
E) Too many people are unemployed.
Answer: D
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old