Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank
E. There is only a cause and effect relationship between two dependent variables.
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 #25
Topic: 01-04 Economic Models
Type: Definition
26.If we say that two variables are directly related, this means that:
A. the relationship between the two is purely random
B. an increase in one variable is associated with a decrease in the other variable
C. an increase in one variable is associated with an increase in the other variable
D. an increase in one variable is associated with no change in the other variable
E. there is no relationship between the two variables
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 #26
Topic: 01-04 Economic Models
Type: Definition
27.If we say that two variables are inversely related, this means that:
A. there is no relationship between the two variables
B. an increase in one variable is associated with a decrease in the other variable
C. an increase in one variable is associated with an increase in the other variable
D. an increase in one variable is associated with no change in the other variable
E. the resulting relationship can be portrayed by a straight line parallel to the horizontal axis
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 #27
Topic: 01-04 Economic Models
Type: Definition
28.Consider the following table:
These data suggest that:
A. consumption varies inversely with after-tax incomes
B. consumption varies directly with after-tax incomes
C. consumption and after-tax income are unrelated
D. a tax increase will increase consumption
E. a tax decrease will decrease consumption
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 #28
Topic: 01-04 Economic Models
Type: Numerical
29.If an inverse relationship exists between x and y, then a(n):
A. increase in x will not affect y
B. decrease in x will cause y to decrease
C. increase in y will cause x to increase
D. increase in x will cause y to decrease
E. an increase in y will not affect x
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 #29
Topic: 01-04 Economic Models
Type: Application
30.Ceteris paribus means that:
A. if event A precedes event B, A has caused B
B. economics deals with facts, not values
C. if event A happens then event B cannot happen
D. prosperity inevitably follows recession
E. all other things remain the same
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 #30
Topic: 01-04 Economic Models
Type: Definition
31.The basic purpose of the ceteris paribus assumption is to:
A. isolate the relationship between two variables by assuming all other factors remain constant
B. allow one to focus upon micro variables by ignoring macro variables
C. allow one to focus upon macro variables by ignoring micro variables
D. determine whether x causes y or vice versa