Question : 51) Suppose a theory predicts that lowering tuition fees at : 1384131

 

51) Suppose a theory predicts that lowering tuition fees at Canadian universities will increase enrollment from low-income households.  If empirical evidence consistently rejects this prediction, then we

A) need to amend the theory.

B) should test the theory again.

C) should change the empirical data.

D) should increase tuition fees back to their initial level.

E) change the exogenous variables in the theory.

52) When studying economic data, and when comparing the magnitude of changes in variables with different scales it is best to

A) compare the absolute data on each variable.

B) compare the relative data on each variable.

C) express each variable as an index number.

D) express each variable as a logarithmic number.

E) use only time-series data.

53) When studying economic data, index numbers are especially valuable when comparing

A) relative movements in different variables measured in different units.

B) relative movements in real and nominal variables.

C) linear and logarithmic data.

D) time-series data with cross-sectional data.

E) government data with private-sector data.

54) The base year for an index number is

A) determined by the year the variable equals exactly 100.

B) dependant upon the type of data.

C) declared by the federal government.

D) chosen arbitrarily by those who construct the data.

E) the year in which 2 or more index numbers are equal to 100.

55) For a given year, an index number of average prices across the economy (such as the Consumer Price Index) is the ratio of the

A) price of several goods in the given year to that in the base year.

B) average price of all goods in the given year to that in the base year.

C) average price of several goods in the base year to that in the given year.

D) weighted prices of a typical bundle of goods purchased in a given year to that in the base year.

E) weighted prices of a typical bundle of goods purchased in the base year to that in the given year.

56) An index number expresses the value of a variable in any given period

A) as a percentage of its value in the base period.

B) as a weighted average.

C) as a proportional weighted average.

D) as an average of its value in the base period.

E) as an absolute compared to the base period.

57) Let 1 stand for “any given period” and 2 stand for “base period.” The formula of any index number can be written as:

A) value of index at 1 = × 100

B) value of index at 1 = × 100

C) value of index at 1 = × 100

D) value of index at 1 =

E) value of index at 1 =

 

 

 

 

 

 

 

 

 

 

 

 

 

58) Refer to Table 2-1. Assume that 2008 is used as the base year, with the index number = 100. The value of the index number in 2010 is calculated as follows:

A) (5000/5100) × 100 = 98

B) 5100/5000 = 1.02

C) 5000/5100 = 0.98

D) 5100/5100 = 100

E) (5100/5000) × 100 = 102

59) Refer to Table 2-1. Assume that 2008 is used as the base year, with the index number = 100. The value of the index number in 2012 is

A) 100

B) 104

C) 1.04

D) 96

E) 0.96

60) Refer to Table 2-1. The increase in tuition fees from 2008 to 2012 is

A) 200.

B) 100/5000.

C) 4%.

D) 0.04%.

E) 200/5200.