Macroeconomics Chapter 1 Appendix

What is the area of the blue triangle shown in the figure to the right (Figure 1A.6) The area of the triangle is

15625

Calculate the total revenue at this price of $2.50 (Figure 1A.5) Revenue = $_____________

187500

Consider the following data for the United States: (Figure 1A.4) The percentage change in real GDP from 2016 to 2017 = _________ The percentage change in real GDP is also known as __________

2.37 ; the economic growth rate

The bar graph to the right illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is (Figure 1A.8)

45%

The prevalence of​ Alzheimer's dementia is very high among residents living in nursing homes. A student concludes that it is likely that living in a nursing home causes​ Alzheimer's dementia. What is the flaw in the​ student's reasoning?

The student is drawing a false​ conclusion; he is making the error of reverse causality

Let V1 equal the value of a variable in period 1 and V2 equal the value of the same variable in period 2. What is the rate of growth between periods 1 and​ 2?

[(V2-V1)/V1]x100

The diagram to the right (Figure 1A.19) is an example of

a time series graph

When we graph the relationship between two​ variables, we often want to draw conclusions about whether changes in one variable are causing changes in the other variable. Doing​ so, however, can lead to incorrect conclusions. Reasons for drawing incorrect conclusions about cause and effect include

an omitted variable, reverse causality

Consider the graph at right. When the number of dating websites​ increases, the number of marriages also increases. From the graph we can conclude

nothing, since there is likely to be an omitted variable

Suppose an inverse demand curve has the following​ equation: P=4- 0.005Q (Figure 1A.11) The demand curve's slope is ____

-0.005

Using the information in the figure to the​ right, calculate the percentage change in auto sales from 2000 to 2001. (Figure 1A.3) The percentage change in auto sales from 2000 to 2001 is equal to

-4.1%

Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product​ (GDP) is an important macroeconomic variable. If in 2010 GDP was​ $11,150 billion​ dollars, and GDP increased to ​$11 comma 479 billion in​ 2011, what is the growth rate of the U.S. economy in​ 2011?

3.0%

In your economics​ class, you scored a 67 on the first​ quiz, a 92 on the second​ quiz, and an 82 on the third quiz. Your average quiz grade is _______ On the fourth​ quiz, you scored an 85. Did the fourth quiz raise your​ average?

80.3 ; Yes

The diagram to the right represents a demand curve for apples. The original demand curve is D1. If a factor other than price which affects demand​ changes, causing demand to increase​, the resultant demand curve is represented by (Figure 1A.10)

D2

Which of the following steps should you follow when using a​ formula?

Make sure the number you calculate using the formula is economically reasonable, Make sure you are using the correct formula for the problem you are solving, Make sure you understand the economic concept the formula represents.

The relationship between two variables is positive when​ ________, and the relationship between two variables is negative when​ ________.

one variable increases and the other increases; one variable increases and the other decreases

The diagram to the right illustrates a very important relationship in economics between two​ variables: the price of a good and the quantity demanded of that good. The two variables in this diagram​ are: (Figure 1A.12)

price (dollars per bushel) on the vertical axis and quantity (bushels per week) on the horizontal axis

________ is a problem that occurs when someone concludes that a change in variable X caused a change in variable Y​ when, in​ fact, it is a change in variable Y that caused a change in variable X.

reverse causality