AEB 3300 Exam 3 Study Guide With Verified Solutions
1. The y-intercept tells us the point at which the straight line crosses the horizontal axis
(x-axis).
a. True
b. False - ANSWER b
1. The equation of any straight line can be written in the form
a. True
b. False - ANSWER a
1. If the slope is positive, then x and y move in the same direction, such that when x
increases then y also increases and vice versa.
a. True
b. False - ANSWER a1. A linear regression is a method for estimating a linear
relationship between different variables.
a. True
b. False
1. A linear regression is a method for estimating a linear relationship between different
variables.
a. True
b. False - ANSWER a
1. In a linear regression, we are essentially estimating the slope and y-intercept
a. True
b. False - ANSWER a
1. Yield and fertilizer used are related through the equation: . which of the following
statements is true?
a. If fertilizer increases by 1 unit, yield will increase by 15 units
b. If fertilizer decreases by 1unit yield will increase by 2.5 units
c. If fertilizer is equal to zero, yield would equal 2.5 units
d. If fertilizer increases by 1unit yield would increase by 2.5 units
, e. None of the answers are correct - ANSWER d
1. Which of the following statements is correct?
a. A dummy variable is used to estimate nonlinear quadratic relationships between 2
variables
b. A dummy variable can only be used as the dependent variable in a regression
c. A dummy variable can only take two values (0 and 1)
d. A dummy variable can only be used to estimate negative relationships between 2
variables
e. None of the answers are correct - ANSWER c
1. A country engages in imports when it sells its products to other countries
a. True
b. False - ANSWER b
1. Tariffs refer to import quotas that are placed on imports and exports
a. True
b. False - ANSWER b
1. NAFTA is a trade agreement between the US, Canada, and Mexico that decreases
tariffs and trade barriers between those three countries
a. True
b. False - ANSWER a
1. Economists argue that free trade is good for the society in almost every circumstance
a. True
b. False - ANSWER a
1. A country has a comparative advantage in the production of a good if it has a lower
opportunity cost for producing that good compared to other countries
a. True
b. False - ANSWER a
1. Which of the following refers to a restriction by a country on the amount of imports of
a certain product during a given period of time?
a. Fixed tariffs
1. The y-intercept tells us the point at which the straight line crosses the horizontal axis
(x-axis).
a. True
b. False - ANSWER b
1. The equation of any straight line can be written in the form
a. True
b. False - ANSWER a
1. If the slope is positive, then x and y move in the same direction, such that when x
increases then y also increases and vice versa.
a. True
b. False - ANSWER a1. A linear regression is a method for estimating a linear
relationship between different variables.
a. True
b. False
1. A linear regression is a method for estimating a linear relationship between different
variables.
a. True
b. False - ANSWER a
1. In a linear regression, we are essentially estimating the slope and y-intercept
a. True
b. False - ANSWER a
1. Yield and fertilizer used are related through the equation: . which of the following
statements is true?
a. If fertilizer increases by 1 unit, yield will increase by 15 units
b. If fertilizer decreases by 1unit yield will increase by 2.5 units
c. If fertilizer is equal to zero, yield would equal 2.5 units
d. If fertilizer increases by 1unit yield would increase by 2.5 units
, e. None of the answers are correct - ANSWER d
1. Which of the following statements is correct?
a. A dummy variable is used to estimate nonlinear quadratic relationships between 2
variables
b. A dummy variable can only be used as the dependent variable in a regression
c. A dummy variable can only take two values (0 and 1)
d. A dummy variable can only be used to estimate negative relationships between 2
variables
e. None of the answers are correct - ANSWER c
1. A country engages in imports when it sells its products to other countries
a. True
b. False - ANSWER b
1. Tariffs refer to import quotas that are placed on imports and exports
a. True
b. False - ANSWER b
1. NAFTA is a trade agreement between the US, Canada, and Mexico that decreases
tariffs and trade barriers between those three countries
a. True
b. False - ANSWER a
1. Economists argue that free trade is good for the society in almost every circumstance
a. True
b. False - ANSWER a
1. A country has a comparative advantage in the production of a good if it has a lower
opportunity cost for producing that good compared to other countries
a. True
b. False - ANSWER a
1. Which of the following refers to a restriction by a country on the amount of imports of
a certain product during a given period of time?
a. Fixed tariffs
