Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

 
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
 
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.
 
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
 
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.
 
E. There is only a cause and effect relationship between two dependent variables.
 
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
 
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
 
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
 
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
 
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
 
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