B) a correlation.
C) an incentive to win the game.
D) a normative statement.
E) a statement on the margin.
Answer: B
Topic: Correlation
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
81) A positive statement
A) must always be right.
B) cannot be tested.
C) might be right or wrong.
D) depends on someone's value judgment.
E) cannot be negative.
Answer: C
Topic: Positive statements
Skill: Level 1: Definition
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
82) Which of the following is a positive statement?
A) Taxes should be lower because then people get to keep more of what they earn, so they will work more.
B) My economics class should last for two terms because it is my favorite class.
C) A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
D) Given their negative impact on productivity, the government should eliminate labor unions.
E) The class average on this test should be more than 80 percent.
Answer: C
Topic: Positive statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
83) Which of the following is NOT a normative economic statement?
A) States should reduce the tax on heating fuel oil during the winter.
B) People over the age of 75 should not be allowed to drive cars.
C) Teenagers are responsible for most driving fatalities.
D) We don't spend enough money on anti-smoking campaigns.
E) The price of gasoline is too high.
Answer: C
Topic: Normative statements
Skill: Level 2: Using definitions
Section: Checkpoint 1.2
Status: Old
AACSB: Reflective thinking
1.3 Appendix: Making and Using Graphs
1) The horizontal axis in a graph
A) measures time on a scatter diagram.
B) measures the quality of a variable.
C) is named the y-axis.
D) is named the x-axis.
E) is called the origin.
Answer: D
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
2) Most economic graphs have two lines perpendicular to each other. The vertical line is called the
A) origin.
B) y-axis.
C) x-axis.
D) variable.
E) time axis.
Answer: B
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
3) The vertical axis in a graph
A) is named the y-axis.
B) is named the x-axis.
C) measures time in a cross-section and time series graph.
D) has no origin.
E) measures time only in a time series graph.
Answer: A
Topic: Axes
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
4) Most economic graphs have two lines perpendicular to each other. Where these lines meet is called the
A) origin.
B) y-axis.
C) x-axis.
D) variable.
E) point of beginning.
Answer: A
Topic: Origin
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
5) A graph of the value of one variable against the value of another variable is known as a
A) two-dimensional graph.
B) three-dimensional graph.
C) time-series graph.
D) scatter diagram.
E) two-variable graph.
Answer: D
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
6) A scatter diagram can be used to see
A) if the value of a variable is rising or falling.
B) the value of a variable for different groups in a population.
C) if a relationship exists between two variables.
D) how a variable behaves over time.
E) whether a variable is positively or negatively related to itself.
Answer: C
Topic: Scatter diagrams
Skill: Level 1: Definition
Section: Chapter 1 Appendix - Checkpoint 1
Status: Old
AACSB: Analytic skills
7) To show how a variable ________, we typically use a ________.
A) relates to another variable; time series graph
B) relates to another variable; pie chart
C) changes over time; time series graph
D) changes over time; cross section graph
E) changes over time; cross time chart