Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

12. If x causes y, then a. x and y are inversely related b. y is a dependent var

ID: 2506410 • Letter: 1

Question

12. If x causes y, then

a.


x and y are inversely related

b.

y is a dependent variable

c.

other variables don't matter

d.

y must, in turn, cause x

e.

x and y are always in a direct relation to each other


13. Which of the following must be true of line D in Exhibit 1-4?
a.


A decrease in P is associated with a decrease in Q.

b.

An increase in P is associated with an increase in Q.

c.

There is no relation between P and Q.

d.

There is an inverse relationship between P and Q.

e.

There is a direct relationship between P and Q.


14.           According to the curve in Exhibit 1-4,

a.              if P = $8, then Q = 8

b.              if P = $10, then Q = 10

c.              Q increases as P increases

d.              Q decreases as P decreases

e.              there is a positive relation between Q and P

                  15.           The statement that there is a direct relation between x and y means that

a.              x and y move in the same direction

b.              x causes y

c.              y causes x

d.              either y causes x or x causes y

e.              the causal connection between x and y is immediate

                  16.           The statement that there is an inverse relationship between x and y means that

a.              x causes y

b.              y causes x

c.              x and y move in opposite directions

d.              either y causes x or x causes y

e.              there is no causal relationship between x and y


                  17.           In Exhibit 1-5, curve A has a __________ slope that is __________ at every point.

a.              positive; constant

b.              positive; changing

c.              negative; constant

d.              negative; changing

e.              changing; constant

                  18.           In Exhibit 1-2, curve B has a __________ slope that is __________ at every point.

a.              positive; constant

b.              positive; changing

c.              negative; constant

d.              negative; changing

e.              changing; constant


                  20.           The slope of the line in Exhibit 1-6 is

a.              0.1

b.              1

c.              10

d.              -0.1

e.              -10

                  21.           One economic application of the slope of a line is

a.              measuring unlimited wants

b.              behavioral analysis

c.              marginal analysis

d.              allocative efficiency

e.              rational self-interest

               

                  22.           In Exhibit 1-9, the slope of the line is

a.              negative for all values of x

b.              positive for all values of x

c.              never zero

d.              first negative, then positive as x increases

e.              first rising, then falling as x increases


29. Money facilitates trade because
a.


it eliminates the need for specialization

b.

it prevents people from taking advantage of each other

c.

it serves as a medium of exchange

d.

division of labor allows money to be produced at a lower cost

e.

people do not benefit from barter unless money is used

                  39.           Which of the following would cause the production possibilities frontier in Exhibit 2-6 to shift from AA to BA?

a.              a drought that affected food production but had no effect on education

b.              a technological improvement in education that had no effect on food production

c.              a technological improvement in food production that had no effect on education

d.              a disease that affected students' ability to learn (and therefore education) but not food production

e.              an increase in the size of the labor force that affected both food production and education

56. What is the rationale for government provision of education?
a.



Not all incomes are equal, but everyone has the right to education regardless of wealth.

b.

Potential students consider only their personal benefits gained from education, but the rest of society benefits, too.

c.

No education would be provided in the absence of government provision because everyone would consume it without paying.

d.

The cost of providing education for the entire public is too large.

e.

The government can provide education at a much lower cost than the private sector.


57. Externalities are
defined as
a.



any transaction external to the firm

b.

costs or benefits that fall on third parties

c.

policies that firms undertake to sell products outside the country

d.

managers' dealings with stockholders outside the firm

e.

costs of maintaining plant and equipment to avoid the scrutiny of external auditors


                  60.           Which of the following would indicate that an income tax is progressive?

a.              high-income people pay $3,000; low-income people pay $1,000

b.              low-income people pay $3,000; high-income people pay $1,000

c.              high-income and low-income people all pay $1000 each

d.              high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent


e.              both high-income and low-income people pay 10 percent of their income in taxes


61. In the United States, the individual income tax is best described as a
a.


regressive tax

b.

proportional tax

c.

flat tax

d.

progressive tax

e.

repressive tax



12. If x causes y, then

a.


x and y are inversely related

b.

y is a dependent variable

c.

other variables don't matter

d.

y must, in turn, cause x

e.

x and y are always in a direct relation to each other

Explanation / Answer

12) b.y is a dependent variable


13) d.There is an inverse relationship between P and Q.


14)a. if P = $8, then Q = 8


15)a. x and y move in the same direction


16)c. x and y move in opposite directions


17)a. positive; constant


18)d. negative; changing


20) c. 10 (=50/5 =10)


21)c. marginal analysis


22)d. first negative, then positive as x increases


29) b.it prevents people from taking advantage of each other


39) a. a drought that affected food production but had no effect on education


56) b.The government can provide education at a much lower cost than the private sector.


57)b.costs or benefits that fall on third parties


60)d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent


61)d.progressive tax