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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Which of the following statements is true?
A) An individual with property rights is likely to have lower productivity than an individual without property rights. B) Inclusive institutions do not support the provision of property rights to society and hence foster economic prosperity. C) Productivity of individuals is likely to be independent of the availability of property rights. D) An individual with property rights is likely to have higher productivity than an individual without property rights.
For state residents, interest on most bonds issued by their state government is
A) exempt from state and federal income taxes. B) exempt from state, but not from federal, income taxes. C) exempt from federal, but not from state, income taxes. D) subject to both state and federal income taxes.