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ECON 6001 Economic Principles

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Question:

Look at Graphs 1 and 2  above. They provide a visual representa1on of poten1al theories about the rela1onship between the numbers of drink drivers on the road and the number of road accidents. Note:  a drink driver is a driver with a blood-alcohol level that is above the legal limit.  Answer the following ques1ons related to this graph:     
1. In Graph 1 which is the dependent variable and which is the independent variable
   
2. In your own words what is Graph 1 postula1ng about the rela1onship between the number of accidents and the number of drink drivers How does the theory underlining Graph 2 differ from the one in Graph 1
3. What does the distance B in Graph 1 represent
4. Using the leCers incorporated in Graph 1, how do you measure the slope of the line
5. Does the slope in Graph 1 measure the amount of accidents caused by drink drivers Are your conclusions different for Graph 2 Jus1fy your answers.
6. Is the slope of the line posi1ve or nega1ve in Graph 1
7. Is the slope of the line in Graph 1 increasing Briefly jus1fy your answer.
8. What would an increase in traffic conges1on do to the graph
9. Looking at Graph 2 above, which of the following statements is most correct (Write down the op1on you think is the most correct): 
(A) The number of road accidents falls as the number of drink drivers increases. 
(B) The number of accidents per drink driver goes down as the number of drink drivers decreases. 
(C) The rate at which accidents increase falls as the number of drink drivers goes up. Torrens_assessment template.docx    
(D) Factors other than alcohol become less important as the number of drink drivers goes up.
10.In your own words outline the hypothesis about the rela1onship between road accidents and the number of drink drivers on the road that is suggested by Graph 2 Does the hypothesis sound feasible to you Jus1fy your answer.
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