Explain how we "read" the three scatter diagrams in Figs. A1.3 and A1.4
What will be an ideal response?
The scatter diagram in Figure A1.3 shows the relationship between box office ticket sales and DVDs sold for 9 popular movies. The figure shows that higher box office sales are associated with a higher number of DVDs sold. But the figure shows that the relationship is weak.
The scatter diagram in Figure A1 .4a shows the relationship between income, in thousands of dollars per year, and expenditure, also in thousands of dollars per year, for the years 2001 to 2011 . The scatter diagram shows that higher income leads to higher expenditure. The figure also shows that the relationship is relatively strong.
The scatter diagram in Figure A1.4b shows the relationship between the inflation rate and the unemployment rate for the years 2001 to 2011 . The figure shows that for most of the years, there was a weak relationship between these variables, with perhaps higher inflation being associated with lower unemployment.
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Fluctuations in the current account balance are mainly the result of fluctuations in
A) net interest. B) net exports. C) foreign reserves. D) net transfers. E) imports of capital.
Refer to the figure above. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium quantity is:
A) 10 units. B) 20 units. C) 40 units. D) 60 units.
How well has the international capital market perform?
What will be an ideal response?
Consider the two graphs above. Suppose that firms are able to use inventories as collateral for low-interest loans. This would ________ the desired level of inventories, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A