Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank
Type: Definition
20.Which of the following is a macroeconomic statement?
A. The gross profits of all Canadian businesses were $60 billion last year.
B. The price of computers declined by 3 percent last year.
C. Bombardier's profits decreased last year.
D. The productivity of Canadian steelworkers increased by 1 percent last year.
E. The prices of science and technology stock rose by 10 percent last year.
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #20
Topic: 01-03 Economics Defined
Type: Application
21.Economic models:
A. are useless because they are not based upon laboratory experiments
B. deal with a multitude of details
C. are generalizations of economic reality
D. are abstractions of reality and are, therefore, of no use to economists
E. are more effective the more complex they are
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #21
Topic: 01-04 Economic Models
Type: Definition
22.Economic models:
A. are of limited use because they cannot be tested empirically
B. are limited to variables that are directly related to one another
C. emphasize basic economic relationships by abstracting from the complexities of the real world
D. are unrealistic and are, therefore, of no practical consequence
E. are often illogical, but are sometimes useful
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #22
Topic: 01-04 Economic Models
Type: Definition
23.Which of the following is a correct statement?
A. Economics is concerned only with explaining the way that economies actually operate and not with how they should operate.
B. Though not quantitatively exact, economic laws are useful because they allow us to predict and, therefore, to control or to adjust to events.
C. Economics is as scientific as physics and chemistry because economic laws are as quantitatively precise as the laws of physics or chemistry.
D. Because economics is concerned with questions of "ought," it is a branch of applied ethics and not scientific.
E. Economics is concerned with how economies should operate and not with how they do operate.
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #23
Topic: 01-04 Economic Models
Type: Definition
24.An economic model usually includes:
A. neither independent nor dependent variables
B. only a dependent variable and no independent variables
C. the proposition that no relationship exists between various factors
D. only an independent variable and no dependent variables
E. two or more factors that have measurable values
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #24
Topic: 01-04 Economic Models
Type: Definition
25.Which of the following statements is correct?
A. The value of the independent variable is determined by the value of the dependent variable.
B. The value of the dependent variable is determined by the value of the independent variable.
C. The dependent variable designates the "cause" and the independent variable the "effect."
D. There is no cause and effect relationship between an independent and dependent variable.