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| 1 | |
An economic model is a physical representation of an economy. |
| | A) | True |
| | B) | False |
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| 2 | |
Data are __________ about __________. |
| | A) | Pieces of evidence, economic behaviour |
| | B) | assumptions, theories |
| | C) | models, behaviour |
| | D) | assumptions, behaviour |
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| 3 | |
Economic relationships are best studied using: |
| | A) | data and computers |
| | B) | models and data |
| | C) | models and computers |
| | D) | econometrics and luck |
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| 4 | |
A behavioural law is: |
| | A) | A sensible theoretical relationship rejected by evidence over a long period. |
| | B) | A sensible theoretical relationship not rejected by witnesses over a long period. |
| | C) | An unlikely theoretical relationship not rejected by evidence over a long period. |
| | D) | A sensible theoretical relationship not rejected by evidence over a long period. |
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| 5 | |
Time series data show information: |
| | A) | about the same point in time over different places. |
| | B) | about a sequence of measurements of the same variable at different points in time. |
| | C) | about different variables over different places. |
| | D) | about different points in time over different places. |
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| 6 | |
Cross-section data record at _____________ the way an economic variable differs across ______________. |
| | A) | different points in time, different places |
| | B) | different variables, different places |
| | C) | different points in time, different variables |
| | D) | a point in time, different individuals |
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| 7 | |
Index numbers express base data in relation to some relative value. |
| | A) | True |
| | B) | False |
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| 8 | |
The retail price index is used to: |
| | A) | construct price lists. |
| | B) | compare shop prices. |
| | C) | measure changes in the cost of living. |
| | D) | None of the above. |
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| 9 | |
Given the choice, it is better to have your income increase in nominal terms than in real terms. |
| | A) | True |
| | B) | False |
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| 10 | |
A real value can be derived from a nominal value by: |
| | A) | adjusting for changes over time. |
| | B) | adjusting for data collection errors. |
| | C) | adjusting for population changes. |
| | D) | adjusting for changes in prices. |
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| 11 | |
If your income during one year is £10,000 and the following year it is £12,000, then it has grown by: |
| | A) | 20% |
| | B) | 2% |
| | C) | 12% |
| | D) | 16% |
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| 12 | |
A straight-line diagram can be drawn knowing the ______ and _________. |
| | A) | vertical axis and horizontal axis |
| | B) | intercept and slope |
| | C) | scale and slope |
| | D) | intercept and scale |
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| 13 | |
To find the percentage change in a number, divide the absolute change by the original number and multiply by 100. |
| | A) | True |
| | B) | False |
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| 14 | |
On a graph, a positive linear relationship: |
| | A) | moves down to the right. |
| | B) | moves up to the left. |
| | C) | moves up to the right. |
| | D) | moves down to the left. |
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| 15 | |
If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale, this is an example of _____________. |
| | A) | a nonlinear relationship |
| | B) | a positive linear relationship |
| | C) | a scatter diagram |
| | D) | a negative linear relationship |
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| 16 | |
Econometrics samples Economists’ beliefs to investigate economic behaviour. |
| | A) | True |
| | B) | False |
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| 17 | |
To understand how the economy works we need both ______ and _____. |
| | A) | theory, facts |
| | B) | diagrams, assumptions |
| | C) | indices, models |
| | D) | diagrams, models |
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| 18 | |
Economic behaviour can be studied in the laboratory. |
| | A) | True |
| | B) | False |
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| 19 | |
Economic behaviour is more easily analysed when: |
| | A) | everything is changing. |
| | B) | nothing is changing. |
| | C) | other things are equal apart from the variables of interest. |
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| 20 | |
Individual economic behaviour is to some extent unpredictable but economists can describe average behaviour. |
| | A) | True |
| | B) | False |
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