ECON 2213 MIDTERM PRACTICE QUESTIONS AND
VERIFIED ANSWERS
Are "years of employment" and "life savings" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - positive and causal. Life savings is endogenous and
Years of employment is exogenous
Are "fraction of income spent on consumer goods" and "level of income" positively
correlated or negatively correlated and what relationship do they have? Which one is
endogenous and which one is exogenous? - Answers - negatively correlated and have
a causal relationship. Fraction of income is endogenous and Level of income is
exogenous
Are "business investment expenditures" and "interest rates" positively correlated or
negatively correlated and what relationship do they have? Which one is endogenous
and which one is exogenous? - Answers - negatively correlated and have a causal
relationship. Business investment is endogenous. Interest rates are exogenous.
Are "level of income" and "years of education" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are positively correlated and have a causal
relationship. Level of income is the endogenous. Years of education is exogenous.
Are "trade balance (net exports)" and "exchange rate" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are negatively correlated and have a causal
relationship. Trade balance is endogenous. Exchange rate is exogenous.
Are "employment insurance" and "unemployment rate" positively correlated or
negatively correlated and what relationship do they have? Which one is endogenous
and which one is exogenous? - Answers - they are positively correlated and have a
causal relationship. Unemployment rate is endogenous. Employment rate is exogenous.
Are "business investment expenditures" and "GDP" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are positively correlated and have a causal
relationship. GDP is endogenous. Business investment expenditures is exogenous.
Which expenditure category of GDP changes, and in which direction, if the federal
government purchases a domestically produced computer to use in a courthouse. -
Answers - Government spending increases
VERIFIED ANSWERS
Are "years of employment" and "life savings" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - positive and causal. Life savings is endogenous and
Years of employment is exogenous
Are "fraction of income spent on consumer goods" and "level of income" positively
correlated or negatively correlated and what relationship do they have? Which one is
endogenous and which one is exogenous? - Answers - negatively correlated and have
a causal relationship. Fraction of income is endogenous and Level of income is
exogenous
Are "business investment expenditures" and "interest rates" positively correlated or
negatively correlated and what relationship do they have? Which one is endogenous
and which one is exogenous? - Answers - negatively correlated and have a causal
relationship. Business investment is endogenous. Interest rates are exogenous.
Are "level of income" and "years of education" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are positively correlated and have a causal
relationship. Level of income is the endogenous. Years of education is exogenous.
Are "trade balance (net exports)" and "exchange rate" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are negatively correlated and have a causal
relationship. Trade balance is endogenous. Exchange rate is exogenous.
Are "employment insurance" and "unemployment rate" positively correlated or
negatively correlated and what relationship do they have? Which one is endogenous
and which one is exogenous? - Answers - they are positively correlated and have a
causal relationship. Unemployment rate is endogenous. Employment rate is exogenous.
Are "business investment expenditures" and "GDP" positively correlated or negatively
correlated and what relationship do they have? Which one is endogenous and which
one is exogenous? - Answers - they are positively correlated and have a causal
relationship. GDP is endogenous. Business investment expenditures is exogenous.
Which expenditure category of GDP changes, and in which direction, if the federal
government purchases a domestically produced computer to use in a courthouse. -
Answers - Government spending increases
