Econ 231 - Exam 1 - Chapter 1 & 2 - Practice Problems || All
Questions Answered Correctly.
During the winter of 1999, road accidents occurred every Friday night in a suburb of Oklahoma.
Citizens assumed Fridays cause accidents. This hypothesis is an example of
a normative statement.
an assumption that causation implies correlation.
a positive statement.
an assumption that correlation implies causation. correct answers an assumption that correlation
implies causation.
Which of the following is true of the degree to which minor details can be ignored to understand
the functioning of an economy?
It depends on the objective of the analysis.
It depends on the cost of collecting detailed data.
It depends on the time required to complete an analysis.
It depends on the researcher's convenience. correct answers It depends on the objective of the
analysis.
In the short run, an increase in the unemployment rate is likely to be accompanied by
a decrease in the inflation rate.
an increase in the supply of money.
an increase in the interest rate.
an increase in the inflation rate. correct answers a decrease in the inflation rate.
Which of these firms would be defined as a strictly American corporation?
Microsoft
Ford Motor Company
Apple Computer
, Nissan Motor Company
None of these corporations are strictly American corporations. correct answers None of these
corporations are strictly American corporations.
The composition of the labor force in the United States has undergone major changes over the
years and there has been
a noticeable increase in the percentage of women in the paid labor force.
an increase in the number of teenage workers.
an increase in the ratio of male to female workers.
a noticeable decrease in the percentage of women in the paid labor force. correct answers a
noticeable increase in the percentage of women in the paid labor force.
Progressive income taxes are imposed in such a manner that
the tax rate decreases as the amount subject to taxation increases.
the same tax rate is applicable to all tax payers.
tax liability and income grow in equal proportion.
the ratio of taxes to income rises as income increases. correct answers the ratio of taxes to
income rises as income increases.
A valid reason for government regulation could be
fulfilling some social objective that
markets fail to achieve.
a desire on the part of the government to control every productive activity.
a desire on the part of the government to further its political
interests.
preventing capitalism from being too productive. correct answers fulfilling some social objective
that
markets fail to achieve.
The U.S. budget has
always been in deficit since World
War II.
Questions Answered Correctly.
During the winter of 1999, road accidents occurred every Friday night in a suburb of Oklahoma.
Citizens assumed Fridays cause accidents. This hypothesis is an example of
a normative statement.
an assumption that causation implies correlation.
a positive statement.
an assumption that correlation implies causation. correct answers an assumption that correlation
implies causation.
Which of the following is true of the degree to which minor details can be ignored to understand
the functioning of an economy?
It depends on the objective of the analysis.
It depends on the cost of collecting detailed data.
It depends on the time required to complete an analysis.
It depends on the researcher's convenience. correct answers It depends on the objective of the
analysis.
In the short run, an increase in the unemployment rate is likely to be accompanied by
a decrease in the inflation rate.
an increase in the supply of money.
an increase in the interest rate.
an increase in the inflation rate. correct answers a decrease in the inflation rate.
Which of these firms would be defined as a strictly American corporation?
Microsoft
Ford Motor Company
Apple Computer
, Nissan Motor Company
None of these corporations are strictly American corporations. correct answers None of these
corporations are strictly American corporations.
The composition of the labor force in the United States has undergone major changes over the
years and there has been
a noticeable increase in the percentage of women in the paid labor force.
an increase in the number of teenage workers.
an increase in the ratio of male to female workers.
a noticeable decrease in the percentage of women in the paid labor force. correct answers a
noticeable increase in the percentage of women in the paid labor force.
Progressive income taxes are imposed in such a manner that
the tax rate decreases as the amount subject to taxation increases.
the same tax rate is applicable to all tax payers.
tax liability and income grow in equal proportion.
the ratio of taxes to income rises as income increases. correct answers the ratio of taxes to
income rises as income increases.
A valid reason for government regulation could be
fulfilling some social objective that
markets fail to achieve.
a desire on the part of the government to control every productive activity.
a desire on the part of the government to further its political
interests.
preventing capitalism from being too productive. correct answers fulfilling some social objective
that
markets fail to achieve.
The U.S. budget has
always been in deficit since World
War II.
