Test Questions with Answers
Chapter 4. The Tools of Economics.
Mathematical Economics. Marginal Analysis
Chapter 4 ― Question 1
How much is 17/19 in terms of percent?
* 89.47 percent. You first divide 100 by 19 and then multiply the outcome by 17.
Chapter 4 ― Question 2
Draw a pie chart to illustrate the following data: Female students account for 4 percent of the entire population.
* Here is some help with the pie chart: The first step is to convert percentages into degrees. A circle has 360 degrees. Divide the percentage by 100 and then multiply the result by 360. In our question the number of degrees is 14.4. (4/100 = 0.04. 360 x 0.04 = 14.4.)
For the second step you need a protractor to show you how to get the 14.4-degree portion of the pie correct. You can download a protractor from the Web. But I haven't done it, which is why you do not find a pie chart here.
Chapter 4 ―Question 3
On what axis are the years on a time-series diagram?
* On the x-axis.
Chapter 4 ― Question 4
1) Write a schedule for the following function: Q = P - 3
2) Is the curve derived from this schedule a demand curve or a supply curve?
3) Is it linear or non-linear?
*1) Here is the schedule:
| P | Q |
| 3 | 0 |
| 4 | 1 |
| 5 | 2 |
| 6 | 3 |
*2) The curve is a supply curve; price and quantity move in the same direction.
*3) The curve is linear; the increases of both magnitudes are regular.
Chapter 4 ― Question 5
1) Write a schedule for the following equation: y = 4x
2) Is the derived curve a supply curve or a demand curve?
3) Is it linear or non-linear?
*1) Here is the schedule:
| x | y |
| 1 | 4 |
| 2 | 8 |
| 3 | 12 |
| 4 | 16 |
*2) It is a supply curve. Quantity rises as price rises.
*3) It is linear; both magnitudes rise by regular intervals.
Chapter 4 ― Question 6
1) Write a schedule for the following equation: y = 8 - x
2) Is the derived curve a supply curve or a demand curve?
3) Is it linear or non-linear?
*1) Here is the schedule:
| x | y |
| 1 | 7 |
| 2 | 6 |
| 3 | 5 |
| 4 | 4 |
| 5 | 3 |
*2) It is a demand curve; quantity rises as price declines.
*3) It is linear.
Chapter 4 ― Question 7
1) Write a schedule for the following equation: y = 2x2
2) Is the derived curve a supply or a demand curve?
3) Is it linear or non-linear?
*1) Here is the schedule:
| x | y |
| 1 | 2 |
| 2 | 8 |
| 3 | 18 |
| 4 | 32 |
| 5 | 50 |
*2) The curve is a supply curve; quantity rises as price rises.
*3) It is non-linear; x has an exponent.
Chapter 4 ― Question 8
What is the difference between a function and an equation?
* A function indicates magnitudes like price, costs or quantity and shows how they are interrelated for any conceivable variable. An equation indicates x, the variable on the x-axis and y, the variable on the y-axis. In the standard graph, quantity is on the x-axis, price is on the y-axis. An equation states that two quantities are equal. An equation is only valid if it can be turned into an identity by substituting a number or a set of numbers for the unknown variables.
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