Question 1

Theories should be judged based upon how

Accepted Answer

A)  well they explain things. 
B)  consistently and accurately they predict. 
C)  famous the economist is making the prediction. 
D)  the amount of attention given to them by the media. 
E)  a and b 
A)  well they explain things. 
B)  consistently and accurately they predict. 
C)  famous the economist is making the prediction. 
D)  the amount of attention given to them by the media. 
E)  a and b

Question 2

In the burglary crime model presented in the text,as the anguish cost of committing a burglary rises,the prediction is that

Accepted Answer

A)  more people will commit burglary. 
B)  the same number of people will commit burglary. 
C)  fewer people will commit burglary. 
D)  There is not enough information to answer this question. 
A)  more people will commit burglary. 
B)  the same number of people will commit burglary. 
C)  fewer people will commit burglary. 
D)  There is not enough information to answer this question.

Question 3

Smith sends her children to a private school on the other side of town. Tuition per student per year: $15,000. Jones sends her children to a public school on her side of town. Tuition per student per year: $0. Most people seem to think that the private school and public school are equivalent when it comes to educating students.According to a theory discussed in the text,

Accepted Answer

A)  Smith lives in a more expensive home than Jones. 
B)  Jones lives in a more expensive home than Smith. 
C)  Smith and Jones live in the same priced homes. 
D)  Smith lives in a bigger home than Jones lives in. 
E)  none of the above 
A)  Smith lives in a more expensive home than Jones. 
B)  Jones lives in a more expensive home than Smith. 
C)  Smith and Jones live in the same priced homes. 
D)  Smith lives in a bigger home than Jones lives in. 
E)  none of the above

Question 4

Refer to Situation 33-1. If the prospective criminal sets the following values:
Ps = 60 percent
Loot = $10,000
Pp = 10 percent
I = $20,000
F = $25,000
AC = $10,000
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)  $6,000; $14,500; will not 
B)  $6,000; $14,500; will 
C)  $6,667; $6,000; will 
D)  $17,500; $12,000; will 
A)  $6,000; $14,500; will not 
B)  $6,000; $14,500; will 
C)  $6,667; $6,000; will 
D)  $17,500; $12,000; will

Question 5

We state that the evidence __________________ if evidence is consistent with a theory's predictions.

Accepted Answer

A)  fails to reject the theory 
B)  proves the theory is correct 
C)  proves the theory is invalid 
D)  none of the above 
A)  fails to reject the theory 
B)  proves the theory is correct 
C)  proves the theory is invalid 
D)  none of the above

Question 6

House A has an ocean view and House B does not. In all other respects,the two houses are the same. The market price of house A is $2,300,000; the market price of house B is $1,600,000. The ocean view is valued at

Accepted Answer

A)  $700,000. 
B)  $1,950,000. 
C)  -$700,000. 
D)  $600,000. 
A)  $700,000. 
B)  $1,950,000. 
C)  -$700,000. 
D)  $600,000.

Question 7

Adrian reads about two theories,A and B. Theory A seems wrong to Adrian and theory B seems correct to Adrian. It follows that

Accepted Answer

A)  theory B is correct, and theory A is not. 
B)  both theories may be correct. 
C)  both theories may be incorrect. 
D)  theory A is trying to explain something completely different than theory B. 
E)  b and c 
A)  theory B is correct, and theory A is not. 
B)  both theories may be correct. 
C)  both theories may be incorrect. 
D)  theory A is trying to explain something completely different than theory B. 
E)  b and c

Question 8

Which of the following is inconsistent with the burglary crime model presented in the text?

Accepted Answer

A)  The burglary rate rises during recessions. 
B)  The burglary rate declines during recessions. 
C)  The burglary rate remains does not change because of a recession. 
D)  The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary. 
E)  a and d 
A)  The burglary rate rises during recessions. 
B)  The burglary rate declines during recessions. 
C)  The burglary rate remains does not change because of a recession. 
D)  The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary. 
E)  a and d

Question 9

A theory predicts that the more a student studies,the higher his or her grades will be. This theory is

Accepted Answer

A)  not falsifiable. 
B)  falsifiable. 
C)  too difficult a theory to test. 
D)  inconsistent with the fact that some students study less than other students, yet receive higher grades. 
E)  b and d 
A)  not falsifiable. 
B)  falsifiable. 
C)  too difficult a theory to test. 
D)  inconsistent with the fact that some students study less than other students, yet receive higher grades. 
E)  b and d

Question 10

One theory discussed in the text is that there is an inverse relationship between the opportunity cost of having children and the number of children a woman will have.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is false?

Accepted Answer

A)  A theory should be judged based upon whether or not it tells us the things we want to hear. 
B)  Scientists are interested in finding out when their theories are wrong or right. 
C)  Scientists are interested in building theories that can be refuted. 
D)  If evidence is consistent with a theory's predictions, we state that the evidence fails to reject the theory. 
A)  A theory should be judged based upon whether or not it tells us the things we want to hear. 
B)  Scientists are interested in finding out when their theories are wrong or right. 
C)  Scientists are interested in building theories that can be refuted. 
D)  If evidence is consistent with a theory's predictions, we state that the evidence fails to reject the theory.

Question 12

Scientists prefer to advance irrefutable theories,rather than refutable theories.

Accepted Answer

A) True 
 B)False

Question 13

If a person gives a gift to another person,an economist would say that it is because

Accepted Answer

A)  the marginal benefit of giving the gift is at least as great as the marginal cost of giving the gift. 
B)  the marginal cost of giving the gift is at least as great as the marginal benefit of giving the gift. 
C)  he expects to receive a gift in return. 
D)  none of the above 
A)  the marginal benefit of giving the gift is at least as great as the marginal cost of giving the gift. 
B)  the marginal cost of giving the gift is at least as great as the marginal benefit of giving the gift. 
C)  he expects to receive a gift in return. 
D)  none of the above

Question 14

George is a gift giver and Roger is a gift recipient. George has Roger in his utility function,but Roger does not have George in his utility function. Roger may try to get George to __________________ George's efficient number of gifts to (give).

Accepted Answer

A)  give more gifts to him than 
B)  reduce the number of gifts he receives below 
C)  increase the number of gifts he receives beyond 
D)  a and b 
E)  a and c 
A)  give more gifts to him than 
B)  reduce the number of gifts he receives below 
C)  increase the number of gifts he receives beyond 
D)  a and b 
E)  a and c

Question 15

Anna gives Billy a gift of $200. We can be sure that Billy will

Accepted Answer

A)  spend the $200 on what Anna hopes that he will spend it on. 
B)  save the $200, and not spend it on anything. 
C)  spend the $200 on whatever is next on Billy's list of things to buy. 
D)  spend the $200 on something that Anna does not want him to spend it on. 
A)  spend the $200 on what Anna hopes that he will spend it on. 
B)  save the $200, and not spend it on anything. 
C)  spend the $200 on whatever is next on Billy's list of things to buy. 
D)  spend the $200 on something that Anna does not want him to spend it on.

Question 16

The bigger the shortage for a good or service,the ____________ the seller of the good or service will or can be to an individual customer _________. (We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)

Accepted Answer

A)  more polite; without having sales adversely affected 
B)  ruder; without having sales adversely affect 
C)  more polite; even though sales will be adversely affected 
D)  ruder; even though sales will be adversely affected 
A)  more polite; without having sales adversely affected 
B)  ruder; without having sales adversely affect 
C)  more polite; even though sales will be adversely affected 
D)  ruder; even though sales will be adversely affected

Question 17

The larger a percentage of the population a person is,the ______________ likely that person will have to further engage with people she meets. This implies that she will generally be ____________ likely to behave unethically and poorly with the people in her town as the population of her town increases.

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 18

Which of the following is not a prediction of the theory on baseball caps and cheating?

Accepted Answer

A)  More people will wear baseball caps on test days than on lecture days. 
B)  More people will wear baseball caps for multiple choice tests than for essay tests. 
C)  More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test. 
D)  b and c 
E)  none of the above 
A)  More people will wear baseball caps on test days than on lecture days. 
B)  More people will wear baseball caps for multiple choice tests than for essay tests. 
C)  More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test. 
D)  b and c 
E)  none of the above

Question 19

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

Accepted Answer

To say that a theory is falsifiable or r

Question 20

There is no difference between building a theory and evaluating a theory.

Accepted Answer

A) True 
 B)False

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

Theories should be judged based upon how

In the burglary crime model presented in the text,as the anguish cost of committing a burglary rises,the prediction is that

We state that the evidence __________________ if evidence is consistent with a theory's predictions.

House A has an ocean view and House B does not. In all other respects,the two houses are the same. The market price of house A is $2,300,000; the market price of house B is $1,600,000. The ocean view is valued at

Adrian reads about two theories,A and B. Theory A seems wrong to Adrian and theory B seems correct to Adrian. It follows that

Which of the following is inconsistent with the burglary crime model presented in the text?

A theory predicts that the more a student studies,the higher his or her grades will be. This theory is

One theory discussed in the text is that there is an inverse relationship between the opportunity cost of having children and the number of children a woman will have.

Which of the following is false?

Scientists prefer to advance irrefutable theories,rather than refutable theories.

If a person gives a gift to another person,an economist would say that it is because

George is a gift giver and Roger is a gift recipient. George has Roger in his utility function,but Roger does not have George in his utility function. Roger may try to get George to __________________ George's efficient number of gifts to (give).

Anna gives Billy a gift of $200. We can be sure that Billy will

The bigger the shortage for a good or service,the ____________ the seller of the good or service will or can be to an individual customer _________. (We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)

Which of the following is not a prediction of the theory on baseball caps and cheating?

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

There is no difference between building a theory and evaluating a theory.

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

The bigger the shortage for a good or service,the ____ the seller of the good or service will or can be to an individual customer _. (We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)