Question 1

Experimental economics

Accepted Answer

A)  is the most common method in economics. 
B)  does not exist. 
C)  uses laboratory experiments to analyze economic behavior. 
D)  is the method used by most economists to analyze individuals' economic behavior. 
E)  is the method used by the government to collect economic data. 
A)  is the most common method in economics. 
B)  does not exist. 
C)  uses laboratory experiments to analyze economic behavior. 
D)  is the method used by most economists to analyze individuals' economic behavior. 
E)  is the method used by the government to collect economic data.

Question 2

Two variables are correlated if

Accepted Answer

A)  they both move up or down at about the same time. 
B)  an increase in one variable only causes another variable to increase. 
C)  a fall in one variable only causes another variable to fall. 
D)  there is no observable pattern in the changes of the two variables over time. 
E)  changes in one variable do not cause changes in the other. 
A)  they both move up or down at about the same time. 
B)  an increase in one variable only causes another variable to increase. 
C)  a fall in one variable only causes another variable to fall. 
D)  there is no observable pattern in the changes of the two variables over time. 
E)  changes in one variable do not cause changes in the other.

Question 3

A microeconomic model must be much smaller in size than a macroeconomic model.

Accepted Answer

A) True 
 B)False

Question 4

Most disagreements between economists occur because of different data sources.

Accepted Answer

A) True 
 B)False

Question 5

Economic models

Accepted Answer

A)  are not complicated because the behavior they describe is not complicated. 
B)  require either algebra or graphs. 
C)  are complicated because human behavior is complicated. 
D)  are simplifications of the phenomena they attempt to explain. 
E)  need to be the same as the phenomena they describe. 
A)  are not complicated because the behavior they describe is not complicated. 
B)  require either algebra or graphs. 
C)  are complicated because human behavior is complicated. 
D)  are simplifications of the phenomena they attempt to explain. 
E)  need to be the same as the phenomena they describe.

Question 6

Economics has always been a good example of an experimental science.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 2A-5
   True/False
-Refer to Exhibit 2A-5. The movement from A to B is called a

Accepted Answer

A)  change in dimension. 
B)  shift in the curve. 
C)  movement along the curve. 
D)  change in the intercept. 
E)  change in the slope. 
A)  change in dimension. 
B)  shift in the curve. 
C)  movement along the curve. 
D)  change in the intercept. 
E)  change in the slope.

Question 8

Exhibit 2A-4  
-Refer to Exhibit 2A-4. The slope of the relationship between X and Y is

Accepted Answer

A)  positive. 
B)  negative. 
C)  zero. 
D)  infinity. 
E)  less than -1. 
A)  positive. 
B)  negative. 
C)  zero. 
D)  infinity. 
E)  less than -1.

Question 9

To see whether the price of gasoline has risen compared to the prices of other goods and services, one would calculate

Accepted Answer

A)  gasoline spending divided by spending on all other goods and services. 
B)  gasoline spending divided by total consumer spending. 
C)  the trend in the price of gasoline. 
D)  the price of gasoline divided by the overall price level. 
E)  the price of gasoline divided by the rate of inflation. 
A)  gasoline spending divided by spending on all other goods and services. 
B)  gasoline spending divided by total consumer spending. 
C)  the trend in the price of gasoline. 
D)  the price of gasoline divided by the overall price level. 
E)  the price of gasoline divided by the rate of inflation.

Question 10

Economic analysis

Accepted Answer

A)  requires few verbal skills. 
B)  requires both quantitative and analytical skills. 
C)  is based solely on analytical models. 
D)  has little use for a historical or philosophical background. 
E)  has little use for mathematics. 
A)  requires few verbal skills. 
B)  requires both quantitative and analytical skills. 
C)  is based solely on analytical models. 
D)  has little use for a historical or philosophical background. 
E)  has little use for mathematics.

Question 11

Ceteris paribus means

Accepted Answer

A)  that rational self-interest is being assumed. 
B)  "all variables are independent." 
C)  that no other assumptions are being made. 
D)  "other things being equal." 
E)  "all relationships are inverse." 
A)  that rational self-interest is being assumed. 
B)  "all variables are independent." 
C)  that no other assumptions are being made. 
D)  "other things being equal." 
E)  "all relationships are inverse."

Question 12

When economists do disagree, the disagreement most likely concerns

Accepted Answer

A)  positive issues. 
B)  normative issues. 
C)  theoretical issues. 
D)  minor issues. 
E)  just about any economic topic. 
A)  positive issues. 
B)  normative issues. 
C)  theoretical issues. 
D)  minor issues. 
E)  just about any economic topic.

Question 13

Economists are likely to evaluate the impacts of rising gasoline prices through the use of

Accepted Answer

A)  outdated models with new applications. 
B)  models that are not relevant to the healthcare industry. 
C)  existing models that are useful for explaining observations. 
D)  models that are useful only for exposition in economics textbooks. 
E)  new models with old data. 
A)  outdated models with new applications. 
B)  models that are not relevant to the healthcare industry. 
C)  existing models that are useful for explaining observations. 
D)  models that are useful only for exposition in economics textbooks. 
E)  new models with old data.

Question 14

An economic model is a tool used to help us understand the real world.

Accepted Answer

A) True 
 B)False

Question 15

A model is valid

Accepted Answer

A)  if it is based on human behavior. 
B)  if it is new. 
C)  if it has been around for many years. 
D)  if it can explains some observations or events. 
E)  only if it makes predictions perfectly. 
A)  if it is based on human behavior. 
B)  if it is new. 
C)  if it has been around for many years. 
D)  if it can explains some observations or events. 
E)  only if it makes predictions perfectly.

Question 16

Explain why it is more difficult to determine causality in economics than in other sciences such as physics, chemistry, and biology.

Accepted Answer

Repeated, controlled experiments are oft

Question 17

What is the difference between correlation and causality?

Accepted Answer

Correlation means that one eve

Question 18

What is the difference between microeconomics and macroeconomics?

Accepted Answer

Microeconomics studies the behavior of i

Question 19

Explain the purpose of each of the following types of graphs:
 (A) Time-5eries 파매
(B) Scatter plot
(C) Pie chart

Accepted Answer

(A) A time-5eries 파맨 is used to shaw how

Question 20

What problems would arise if economists did not make ceteris paribus assumptions when making predictions?

Accepted Answer

Without making ceteris paribus

Experimental economics

Two variables are correlated if

A microeconomic model must be much smaller in size than a macroeconomic model.

Most disagreements between economists occur because of different data sources.

Economic models

Economics has always been a good example of an experimental science.

Exhibit 2A-5 True/False -Refer to Exhibit 2A-5. The movement from A to B is called a

Exhibit 2A-4 -Refer to Exhibit 2A-4. The slope of the relationship between X and Y is

To see whether the price of gasoline has risen compared to the prices of other goods and services, one would calculate

Economic analysis

Ceteris paribus means

When economists do disagree, the disagreement most likely concerns

Economists are likely to evaluate the impacts of rising gasoline prices through the use of

An economic model is a tool used to help us understand the real world.

A model is valid

Explain why it is more difficult to determine causality in economics than in other sciences such as physics, chemistry, and biology.

What is the difference between correlation and causality?

What is the difference between microeconomics and macroeconomics?

Explain the purpose of each of the following types of graphs: (A) Time-5eries 파매 (B) Scatter plot (C) Pie chart

What problems would arise if economists did not make ceteris paribus assumptions when making predictions?

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters

Exam 2: Observing and Explaining the Economy

Experimental economics

Two variables are correlated if

A microeconomic model must be much smaller in size than a macroeconomic model.

Most disagreements between economists occur because of different data sources.

Economic models

Economics has always been a good example of an experimental science.

Exhibit 2A-5 True/False -Refer to Exhibit 2A-5. The movement from A to B is called a

Exhibit 2A-4 -Refer to Exhibit 2A-4. The slope of the relationship between X and Y is

To see whether the price of gasoline has risen compared to the prices of other goods and services, one would calculate

Economic analysis

Ceteris paribus means

When economists do disagree, the disagreement most likely concerns

Economists are likely to evaluate the impacts of rising gasoline prices through the use of

An economic model is a tool used to help us understand the real world.

A model is valid

Explain why it is more difficult to determine causality in economics than in other sciences such as physics, chemistry, and biology.

What is the difference between correlation and causality?

What is the difference between microeconomics and macroeconomics?

Explain the purpose of each of the following types of graphs: (A) Time-5eries 파매 (B) Scatter plot (C) Pie chart

What problems would arise if economists did not make ceteris paribus assumptions when making predictions?

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters