Question 1

Which of the following theories is not falsifiable or refutable?

Accepted Answer

A)  Everything that has happened to Jane throughout her life happened to her specifically because she was born on June 23, 1993. 
B)  People with blue eyes tend to be more sensitive to light than people with brown eyes. 
C)  Women who are electrical engineers tend to have fewer children than women who are retail cashiers. 
D)  People who watch more than six hours of television per day tend to weigh more than people who watch fewer hours of television daily. 
E)  all of the above 
A)  Everything that has happened to Jane throughout her life happened to her specifically because she was born on June 23, 1993. 
B)  People with blue eyes tend to be more sensitive to light than people with brown eyes. 
C)  Women who are electrical engineers tend to have fewer children than women who are retail cashiers. 
D)  People who watch more than six hours of television per day tend to weigh more than people who watch fewer hours of television daily. 
E)  all of the above A

Question 2

Universities A and B are substitutes in the minds of many college students. Initially the student tuition at each university is the same and far below equilibrium tuition. Then,the tuition at A is raised and B is not. As a result of a rising tuition at A,some students who would have applied and enrolled in A,instead apply to B. Based on the logic presented in one of the theories discussed in the text,we would expect that

Accepted Answer

A)  instructors at B will begin to be less nearly punctual for office hours than they were before. 
B)  instructors at A will begin to be more nearly punctual for office hours than they were before. 
C)  instructors at B will be more nearly punctual for office hours than they were before. 
D)  a and b 
E)  b and c 
A)  instructors at B will begin to be less nearly punctual for office hours than they were before. 
B)  instructors at A will begin to be more nearly punctual for office hours than they were before. 
C)  instructors at B will be more nearly punctual for office hours than they were before. 
D)  a and b 
E)  b and c D

Question 3

Refer to Situation 33-1. If the prospective criminal sets the following values:
Ps = 75 percent
Loot = $50,000
Pp = 20 percent
I = $80,000
F = $35,000
AC = $5,000
The prospective criminal's expected benefit from committing the burglary is ______________ and his expected cost of committing the burglary is _______________. Economic theory tells us that under these circumstances,the prospective criminal ______________ commit the burglary.

Accepted Answer

A)  $37,500; $28,000; will not 
B)  $37,500; $28,000; will 
C)  $6,667; $14,000; will not 
D)  $57,500; $120,000; will 
A)  $37,500; $28,000; will not 
B)  $37,500; $28,000; will 
C)  $6,667; $14,000; will not 
D)  $57,500; $120,000; will B

Question 4

For economic imperialists,economics is more of a method of analysis than a specific field of study.

Accepted Answer

A) True 
 B)False

Question 5

The efficient number of gifts that a gift-giver wants to give is the number at which the marginal benefits of giving a gift are__________________the marginal costs of giving a gift.

Accepted Answer

A)  greater than 
B)  less than 
C)  equal to 
D)  less than or equal to 
A)  greater than 
B)  less than 
C)  equal to 
D)  less than or equal to

Question 6

"The theory's predictions are consistent with what I believe,so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that

Accepted Answer

A)  theories should be tested by gathering and analyzing data. 
B)  theories are descriptive of reality. 
C)  theories should be falsifiable or refutable. 
D)  b and c 
E)  none of the above 
A)  theories should be tested by gathering and analyzing data. 
B)  theories are descriptive of reality. 
C)  theories should be falsifiable or refutable. 
D)  b and c 
E)  none of the above

Question 7

Which of the following can a homebuyer pay for indirectly when purchasing a home?

Accepted Answer

A)  good weather 
B)  a good school district 
C)  a nice view 
D)  all of the above 
A)  good weather 
B)  a good school district 
C)  a nice view 
D)  all of the above

Question 8

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that

Accepted Answer

A)  if the supply of openings at each university is the same, then the demand to attend university B is higher than the demand to attend university A. 
B)  the supply of openings is necessarily larger at university A than B. 
C)  instructors at university B are likely to be more punctual when meeting their office hours than instructors at university A. 
D)  a and c 
E)  none of the above 
A)  if the supply of openings at each university is the same, then the demand to attend university B is higher than the demand to attend university A. 
B)  the supply of openings is necessarily larger at university A than B. 
C)  instructors at university B are likely to be more punctual when meeting their office hours than instructors at university A. 
D)  a and c 
E)  none of the above

Question 9

Smith drives his car numerous places. Sometimes he drives his car around his residential neighborhood and sometimes he drives it on the highway. Occasionally,Smith gets peeved with the way other people drive and makes a rude gesture to them. Based on one of the theories discussed in the text,he is

Accepted Answer

A)  more likely to make a rude gesture to another driver on the highway than in his residential neighborhood. 
B)  less likely to make a rude gesture to another driver on the highway than in his residential neighborhood. 
C)  equally likely to make a rude gesture to another driver on the highway as in the residential neighborhood. 
D)  There is not enough information provided to answer this question. 
A)  more likely to make a rude gesture to another driver on the highway than in his residential neighborhood. 
B)  less likely to make a rude gesture to another driver on the highway than in his residential neighborhood. 
C)  equally likely to make a rude gesture to another driver on the highway as in the residential neighborhood. 
D)  There is not enough information provided to answer this question.

Question 10

In general,in a given rich country the ______________ the opportunity cost for a woman of having and raising a child,the _____________ children she will have.

Accepted Answer

A)  higher; fewer 
B)  higher; more 
C)  lower; fewer 
D)  lower; more 
E)  a and d 
A)  higher; fewer 
B)  higher; more 
C)  lower; fewer 
D)  lower; more 
E)  a and d

Question 11

If people value clean air over dirty air,and if the air in city A is cleaner than the air in city B (by a wide margin),then we would expect that ____________________,all else equal between the two cities.

Accepted Answer

A)  comparable houses in the two cities will sell for the same price. 
B)  comparable house in A will be more expensive than comparable house in B. 
C)  comparable house in B will be more expensive than comparable house in A. 
D)  There is not enough information to answer the question. 
A)  comparable houses in the two cities will sell for the same price. 
B)  comparable house in A will be more expensive than comparable house in B. 
C)  comparable house in B will be more expensive than comparable house in A. 
D)  There is not enough information to answer the question.

Question 12

For every gift that A gives to B from the first to the tenth gift,A receives a net benefit of $10. The additional cost to A of giving an additional gift is constant at $5. It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis).

Accepted Answer

A)  downward-sloping over units 1 -10. 
B)  upward-sloping over units 1-10. 
C)  horizontal over units 1-10. 
D)  vertical over units 1-10. 
E)  There is not enough information provided to answer the question. 
A)  downward-sloping over units 1 -10. 
B)  upward-sloping over units 1-10. 
C)  horizontal over units 1-10. 
D)  vertical over units 1-10. 
E)  There is not enough information provided to answer the question.

Question 13

The instructors at College A are regularly late for their office hours. Based on a theory presented in the text,we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A.

Accepted Answer

A)  lower; higher; small 
B)  higher; lower; small 
C)  lower; higher; large 
D)  higher; lower; large 
A)  lower; higher; small 
B)  higher; lower; small 
C)  lower; higher; large 
D)  higher; lower; large

Question 14

Theory B predicts that everything that happens,happens for a reason - although we may not know what the reason is. This theory

Accepted Answer

A)  can be refuted. 
B)  probably cannot be refuted. 
C)  is a good explanation for what happens. 
D)  is the kind of theory that scientists like to build because it can explain so much. 
A)  can be refuted. 
B)  probably cannot be refuted. 
C)  is a good explanation for what happens. 
D)  is the kind of theory that scientists like to build because it can explain so much.

Question 15

In general,a dry cleaner in a small town is ______________ likely to be unethical in his business practices than a dry cleaner in a large city. This is because the larger a percentage of the population a person is,the _____________likely that person will have to further engage with people he initially meets.

Accepted Answer

A)  more; less 
B)  less; less 
C)  more; more 
D)  less; more 
A)  more; less 
B)  less; less 
C)  more; more 
D)  less; more

Question 16

Identify and describe each step of the five-step process outlined in the text for building and testing theories.

Accepted Answer

The first step in building and testing t

Question 17

Suppose you go to a high school and identify groups of students sitting at different lunch tables.To you it appears that everyone on the football team sits at one table,everyone who gets really high grades sits at another table,everyone who is in the drama club sits at another table,and so on. This outcome could be

Accepted Answer

A)  the result of everyone preferring to sit at a table with dissimilar students, but not want to be at a table if he or she is in a 30 percent minority or less. 
B)  because people naturally discriminate against (and make feel unwelcome) those people who are not like them. 
C)  because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch) according to certain key interests. 
D)  b and c 
E)  all of the above 
A)  the result of everyone preferring to sit at a table with dissimilar students, but not want to be at a table if he or she is in a 30 percent minority or less. 
B)  because people naturally discriminate against (and make feel unwelcome) those people who are not like them. 
C)  because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch) according to certain key interests. 
D)  b and c 
E)  all of the above

Question 18

To an economist,it is preferable to

Accepted Answer

A)  assume that all criminals are rational. 
B)  assume that all criminals are irrational. 
C)  build a theory based on a rational criminal and then check the evidence. 
D)  a or b 
A)  assume that all criminals are rational. 
B)  assume that all criminals are irrational. 
C)  build a theory based on a rational criminal and then check the evidence. 
D)  a or b

Question 19

Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is

Accepted Answer

A)  becoming increasingly concerned with corporations rather than small businesses. 
B)  becoming increasingly focused on government actions rather than on business activity. 
C)  spreading out into other fields of study, such as history, anthropology, and sociology. 
D)  becoming increasingly focused on business activity rather than on government actions. 
A)  becoming increasingly concerned with corporations rather than small businesses. 
B)  becoming increasingly focused on government actions rather than on business activity. 
C)  spreading out into other fields of study, such as history, anthropology, and sociology. 
D)  becoming increasingly focused on business activity rather than on government actions.

Question 20

A person tends to be ______________ likely to lose her temper with a boss than with a friend because the opportunity cost of losing her temper with her boss tends to be _____________ than the opportunity cost of losing her temper with her friend.

Accepted Answer

A)  less; higher 
B)  more; higher 
C)  less; lower 
D)  more; lower 
A)  less; higher 
B)  more; higher 
C)  less; lower 
D)  more; lower

Exam 33: Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

Which of the following theories is not falsifiable or refutable?

For economic imperialists,economics is more of a method of analysis than a specific field of study.

The efficient number of gifts that a gift-giver wants to give is the number at which the marginal benefits of giving a gift are__________________the marginal costs of giving a gift.

"The theory's predictions are consistent with what I believe,so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that

Which of the following can a homebuyer pay for indirectly when purchasing a home?

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that

Smith drives his car numerous places. Sometimes he drives his car around his residential neighborhood and sometimes he drives it on the highway. Occasionally,Smith gets peeved with the way other people drive and makes a rude gesture to them. Based on one of the theories discussed in the text,he is

In general,in a given rich country the ______________ the opportunity cost for a woman of having and raising a child,the _____________ children she will have.

If people value clean air over dirty air,and if the air in city A is cleaner than the air in city B (by a wide margin),then we would expect that ____________________,all else equal between the two cities.

The instructors at College A are regularly late for their office hours. Based on a theory presented in the text,we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A.

Theory B predicts that everything that happens,happens for a reason - although we may not know what the reason is. This theory

Identify and describe each step of the five-step process outlined in the text for building and testing theories.

To an economist,it is preferable to

Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is

A person tends to be ______________ likely to lose her temper with a boss than with a friend because the opportunity cost of losing her temper with her boss tends to be _____________ than the opportunity cost of losing her temper with her friend.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

In general,in a given rich country the __ the opportunity cost for a woman of having and raising a child,the _ children she will have.

The instructors at College A are regularly late for their office hours. Based on a theory presented in the text,we would predict that the gap between the ________student tuition and _equilibrium tuition is _______ at College A.

A person tends to be __ likely to lose her temper with a boss than with a friend because the opportunity cost of losing her temper with her boss tends to be _ than the opportunity cost of losing her temper with her friend.