Economic Thinking: Quiz

Sheila currently studies 3 hours per week, attends class 4 out of 4 possible hours per week and had a GPA of 2.0 last semester. Using the equation Grade = (0.50 x hours spent studying) + (0.25 x class attendance) + (0.25 x prior GPA), determine how many total hours per week Sheila needs to study if she wishes to get a 4.0.

5 hours

Given X = 52+27-((3/15)*100), X is ________.

59

Macroeconomic topics can be impacted by which of the following microeconomic topics?

How do people decide how much to save for the future, or whether they should borrow to spend beyond their current means?

In this time series graph, the unemployment rate fluctuates from around 4% to 10%. Given this information, 1987 had an unemployment rate of around 6%. Compare the unemployment rate in 2010 with that of 1987. Which of the following statements is true?

It was easier to find work in 1987 than in 2010 because the unemployment rate was lower than in 2010.

When creating a graph for your economics course, which axis is most commonly used to represent quantity (q)?

Quantity is most commonly represented on the x-axis.

The relationship between head size and a person's success in playing soccer can best be represented on a graph by

a line with zero slope (no relationship between size of student head and test scores).

In economics, functions often describe cause and effect. In an economic function, the variable being described on the left-hand side represents a(n) ________?

effect

What are the factors of production?

land, economic capital, labor, entrepreneurship

Congress must vote whether to increase the government budget so as not to shut down the government this year. The vote passed and the budget ceiling has been increased to keep the government running. This is an example of what type of policy?

macroeconomic fiscal policy

In a world of scarcity, we will never

meet all of society's wants.

When certain assumptions are used to create an economic model, the value of the model can be tested by its ability to

predict outcomes.

From the graph above, one could conclude that, all else remaining constant

the relationship between X and Y is direct.

Economists assume that individual decisions will be determined by

the trade-offs they creates.

In the case of a positive relationship between two variables, all else remaining constant:

the values of the two variables will move in the same direction.

When picking up a rental car at an airport car rental agency, some travelers stand in line waiting to sign paperwork and pick up car keys at the rental desk while other travelers can go right to their rental car by using their rental car loyalty club card. In this example, the travelers who move quickly through to the parking lot pick up their car are probably

travelers who value convenience more than those waiting in line and are willing to pay additional club fees for the option of avoiding them.

A nation that bans trade with other nations

will be unable to specialize in what they are good at and therefore end up consuming less.

Given that total spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict total household spending with a model y=b+mx, where

y represents income earned.(wrong)