Question : Figure 1-1 11) Refer to Figure 1-1.  Using the information : 1266830

Figure 1-1

11) Refer to Figure 1-1.  Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

A) 23.1%

B) 23.8%

C) 30%

D) 42.9%

Figure 1-2

12) Refer to Figure 1-2. Calculate the area of the triangle A.

A) $1.3 million

B) $2.6 million

C) $3.4 million

D) $5.2 million

Figure 1-3

13) Refer to Figure 1-3. Calculate the area of the trapezoid X.

A) $270

B) $720

C) $810

D) $2,520

Figure 1-4

14) Refer to Figure 1-4. Which of the following statements is false?

A) The slope of the tangent at E is positive.

B) The slope of the tangent at F is negative.

C) The slope of the tangent at E and the slope of the tangent at F are equal.

D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero.

15) What is the “omitted variable” problem in determining cause and effect?

A) It is a problem that arises when an insignificant variable is given too much weight in an economic analysis leading to skewed conclusions about cause and effect.

B) It is a problem that arises when a significant variable is not given enough weight in an economic experiment leading to skewed conclusions about cause and effect.

C) It is a problem that arises when an insignificant economic variable that should have been omitted is included in an economic experiment leading to false conclusions about cause and effect.

D) It is a problem that arises when an economic variable that affects other variables is omitted from an analysis and its omission leads to false conclusions about cause and effect.

16) ________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X.

A) The omitted variable

B) The positive-to-negative relationship

C) Reverse causality

D) Nonlinear slope

17) 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 nursing home causes Alzheimer’s dementia. What is the flaw in the student’s reasoning?

A) The student has failed to take into account other causes of Alzheimer’s disease.

B) The student is drawing a false conclusion; he is confusing cause and effect.

C) The student is using an inadequate sample size.

D) The student is drawing a false conclusion by making the mistake of omitting critical variables such as the age and gender of the residents.

18) You explain to your roommate Surya, who makes beaded headbands, about an economic theory which asserts that consumers will purchase more of a product at lower prices than they will at higher prices.  She contends that the theory is incorrect because over the past two years she has lowered the price of her headbands and yet has seen a decrease in sales. How would you respond to Surya?

A) Surya is right; she has evidence to back her claim. The theory must be erroneous.

B) Surya is making the mistake of assuming that correlation implies causation.

C) I will explain to her that she is making the error of reverse causality: it is the decrease in demand that has caused her to lower her prices.

D) I will explain to her that there are some omitted variables that have contributed to a decrease in her sales such as changes in income.

Table 1-2

Year

DVD Recorders (millions)

2007

     12.5

2008

     14.0

2009

     17.2

2010

     20.0

2011

    21.7

19) Refer to Table 1-2.  The table above shows the sales of DVD recorders in North America. Present the information using a bar graph.