Terminology 2

Question 1

Normative statement

Answer 1

A statement about what ought to be; it is based on a value judgment

Question 2

Positive statement

Answer 2

A statement about what actually is, was or will be; it is not based on a value judgment

Question 3

Variable

Answer 3

Any well defined item such as the price or quantity of a commodity that can take on various specific values

Question 4

Endogenous variable

Answer 4

A variable that is explained within a theory. Sometimes called an induced variable or a dependent variable

Question 5

Exogenous variable

Answer 5

A variable that is determined outside the theory. Sometimes called an autonomous variable or an independent variable

Eg. The weather

Question 6

Index number

Answer 6

A measure of some variable conventionally expressed relative to a base period which is assigned the value 100

Question 7

Cross sectional data

Answer 7

A set of observations of a variable made at the same time across several different units (such as households, firms or countries)

Question 8

Time series data

Answer 8

A set of observations of a variable made at successive periods of time

Question 9

Scatter diagram

Answer 9

A graph showing two variables one measured on the horizontal and the other on the vertical axis. Each point represents the values of the variables for a particular unit of observation