Rolando realizes that whenever he studies for at least two hours immediately before a physics exam, he gets an A on the exam, but when he does not study immediately before an exam, he gets no higher than a C on the exam. He concludes that the time spent studying immediately before the exams is responsible for his improved grades. Rolando is
A. probably misguided in that there is no apparent correlation or causation in this situation.
B. very probably correct in his conclusion that the time spent studying immediately before his exams is a reason for his improved grades.
C. likely correct that there is causation, but the causation is more likely running in the opposite direction in that the improved exam grades forced him to study immediately before each test.
D. definitely confusing correlation with causation.
Answer: B
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The Fed uses a "core" price index, one that excludes food and energy prices to measure inflation. It does so because
A) food and energy have inelastic demand curves and consumers will buy them regardless of their price. B) food and energy prices have wide swings that are not related to the causes of general inflation. C) food and energy prices do not change all that much during the short run, so are irrelevant to the calculation of inflation. D) it wants to avoid the blame for high gasoline prices causing inflation.
The inflation rate in a particular country between 2000 and 2005 was 4.5 percent. This implies that the total cost of purchasing a basket of goods was $450 in 2000 and_____ in 2005
a. $470.25 b. $20.25 c. $407.25 d. $200.45
Which country is correctly matched with its 2015 inflation rate?
a. 9 percent inflation in the United States. b. 3.6 percent inflation in Russia. c. 59 percent inflation in Venezuela. d. 4.9 percent inflation in India.
Income mobility tells us:
A. the inflation rate associated with wages across all jobs in a country. B. the inflation rate relative to the cost of living in a country. C. how available the opportunity to better oneself is in the economy. D. how likely people are to seek out opportunities to better themselves.