Title: Math in Economics
Course: TEST Course

Q: The very best models have an unusual combination of characteristics. They are both
- linear and inverse.
- graphical and numerical.
- useful and simple.
A: useful and simple.

Q: What combination of model characteristics are frequently used in the most effective models?
- linear and inverse.
- graphical and can be expressed as a mathematical function.
- useful and simple.
A: useful and simple.

Q: The ability of a model to predict outcomes (accurately) is an indicator that
- the model is biased.
- the theory behind the model needs to be refined.
- the assumptions of the model are generally accurate.
A: the assumptions of the model are generally accurate.

Q: What can be assumed if a model can accurately predict outcomes?
- The model is not based on a theory.
- The theory behind the model needs to be refined.
- The assumptions of the model are generally accurate.
A: The assumptions of the model are generally accurate.

Q: When certain assumptions are used to create a model of reality, its value can be tested and determined by its ability to
- graph equations.
- produce data.
- predict outcomes.
A: predict outcomes.

Q: Once a model of reality is constructed around certain assumptions, it can be tested to determine its value in
- graphing equations.
- producing data.
- predicting outcomes.
A: predicting outcomes.

Q: A manufacturer is trying to accurately predict how many more units of a product will be purchased by their business customers if a product is discounted by 5%. What tool will assist the manufacturer to most accurately predict the purchase behavior?
- data analysis
- macroeconomic data
- mathematical equations
A: mathematical equations

Q: A company is trying to accurately predict how many more units of a product will be purchased by their customers if the product is discounted by 15%. What tool will assist the company to most accurately run this assessment?
- data analysis
- macroeconomic data
- mathematical equations
A: mathematical equations

Q: The ________ simplifies the economy into two groups, firms and households, and allows us to make predictions about economic behavior.
- the production possibilities graph
- the supply & demand framework
- the circular flow diagram
A: the circular flow diagram

Q: The ________ shows the interaction between household and firms in the goods and services market as well as in the labor market. This simplifies a complex economy, enabling economists to better observe and understand behavior.
- the production possibilities graph
- the supply & demand framework
- the circular flow diagram
A: the circular flow diagram

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

Q: Functions are often described as cause and effect in economics. In an economics function, if the variable is on the right-hand side and is doing the explaining, it represents a(n) ________?
- effect
- result
- cause
A: cause

Q: Sydney is an economist putting together an economic model to predict the outcome from particular causes and effects in the economy. What tool is best for testing out her model?
- environmental absolutes
- dialectic dialogue
- mathematical functions
A: mathematical functions

Q: If an economist is trying to predict the outcome from particular causes and effects, what is the best tool(s) for her to use in order to test out her economic model?
- environmental absolutes
- dialectic dialogue
- mathematical functions
A: mathematical functions

Q: If Sam currently studies 3 hours per week and attends class 4 out of 4 possible hours per week and had a GPA of 2.75 last semester. Using the equation Grade = (0.50 x hours spent studying) + (0.25 x class attendance) + (0.25 x prior GPA) figure out, if Sam wishes to get a 4.0, how many additional hours per week does he need to study?
- 1.25 hours
- 5.5 hours
- 2.5 hours
A: 2.5 hours

Q: If Sheila currently studies 3 hours per week and 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) figure out, if Sheila wishes to get a 4.0, how many total hours per week does she need to study?
- 2.5 hours
- 1.25 hours
- 5.5 hours
A: 5.5 hours

Q: Charlie searched for a model and discovered one on which to base his theory. For his model he used the circular flow diagram, applied math functions to predict economic actions, and identified the economic aspects and associations used in the model. All of his actions are in line, but what has Charlie forgotten to do with his model?
- Charlie forgot to use extra mathematical functions.
- Charlie forgot to identify the relationships in action in his model.
- Charlie forgot to explain assumptions he used to simplify the model.
A: Charlie forgot to explain assumptions he used to simplify the model.

Q: Candice is using the circular flow diagram to identify a particular aspect of her economic theory for her Macroeconomics class. The actions she took was to use the circular flow diagram, apply math functions to predict economic actions, and identified the economic aspects and associations used in the model. What action has Candice forgotten to take with her model?
- Candice forgot to use more mathematical functions.
- Candice forgot to identify the relationships in action in her model.
- Candice forgot to explain the assumptions she used to simplify the model.
A: Candice forgot to explain the assumptions she used to simplify the model.

Q: Lynn sat down to calculate the economic equation, y= 12+7x18, for her economics course. What should she remember to do in order to find y?
- Start with the first variable of the equation.
- Multiple and divide from right to left.
- Follow the correct order of operations.
A: Follow the correct order of operations.

Q: In order to calculate an economic equation to understand its economic implications, what must one remember to do?
- Start with the last variable of the equation.
- Multiply and divide from right to left.
- Follow the correct order of operations.
A: Follow the correct order of operations.

Q: 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.
- b = ½.
- x represents income earned.
A: x represents income earned.

Q: 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
- x represents total spending.
- b represents total spending.
- y represents total spending.
A: y represents total spending.

Q: According to the order of operations in solving equations, which step should come first?
- Multiply and divide from left to right.
- Add and subtract from left to right.
- Simplify inside parentheses and brackets.
A: Simplify inside parentheses and brackets.

Q: If Cece is trying to solve an equation, which step should she take first?
- Add from left to right.
- Subtract from left to right
- Multiply from left to right.
A: Multiply from left to right.

Q: Given X = 22+10-((5/25)*100), X is ________.
- 3,180
- 31.998
- 12
A: 12

Q: Given X = 52+27-((3/15)*100), X is ________.
- 78.998
- 7,880
- 59
A: 59