Question 1

Economic models omit many details to allow us to see what is truly important.

Accepted Answer

A) True 
 B)False

Question 2

What is feminist economics?

Accepted Answer

Feminist economics questions many of the

Question 3

Which of the following activities would occur in a market for goods and services?

Accepted Answer

A) Stefan mows his grass. 
B) Toyota hires additional workers to run a third shift at a car factory. 
C) Mafusi bakes biscuits for her son's birthday party. 
D) Kudzai buys a ticket to a rugby match. 
A) Stefan mows his grass. 
B) Toyota hires additional workers to run a third shift at a car factory. 
C) Mafusi bakes biscuits for her son's birthday party. 
D) Kudzai buys a ticket to a rugby match.

Question 4

Which of the following is an example of a positive, as opposed to normative, statement?

Accepted Answer

A) Income tax rates should not have been cut as they were a few years ago. 
B) The quantity of money has grown too slowly in recent years. 
C) When the quantity of money grows rapidly, inflation is a predictable consequence. 
D) All of the above are positive statements. 
A) Income tax rates should not have been cut as they were a few years ago. 
B) The quantity of money has grown too slowly in recent years. 
C) When the quantity of money grows rapidly, inflation is a predictable consequence. 
D) All of the above are positive statements.

Question 5

Models are also inherently unstable when they extend to

Accepted Answer

A) long time periods. 
B) short time periods. 
C) no time periods. 
D) micro periods of time. 
A) long time periods. 
B) short time periods. 
C) no time periods. 
D) micro periods of time.

Question 6

Economists devise theories, collect data, and then analyse these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Question 7

Explain some of the underlying assumptions of the Austrian School of economics?

Accepted Answer

Austrian school economists look at the e

Question 8

Economists make assumptions in order to

Accepted Answer

A) mimic the methodologies employed by other scientists. 
B) minimise the number of experiments that yield no useful data. 
C) minimise the likelihood that some aspect of the problem at hand is being overlooked. 
D) focus their thinking on the essence of the problem at hand. 
A) mimic the methodologies employed by other scientists. 
B) minimise the number of experiments that yield no useful data. 
C) minimise the likelihood that some aspect of the problem at hand is being overlooked. 
D) focus their thinking on the essence of the problem at hand.

Question 9

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 10

A statement describing how the world is now

Accepted Answer

A) is a normative statement. 
B) is a positive statement. 
C) would only be made by an economist speaking as a policy adviser. 
D) would only be made by an economist employed by the government. 
A) is a normative statement. 
B) is a positive statement. 
C) would only be made by an economist speaking as a policy adviser. 
D) would only be made by an economist employed by the government.

Question 11

Economists regard events from the past as

Accepted Answer

A) irrelevant, since history is unlikely to repeat itself. 
B) of limited interest, since those events seldom provide any useful economic data. 
C) interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories. 
D) interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future. 
A) irrelevant, since history is unlikely to repeat itself. 
B) of limited interest, since those events seldom provide any useful economic data. 
C) interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories. 
D) interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future.

Question 12

If money growth and inflation were strongly correlated in international data, the economist would become more ___________ in a theory linking the two.

Accepted Answer

A) doubtful 
B) confident 
C) anxious 
D) concerned 
A) doubtful 
B) confident 
C) anxious 
D) concerned

Question 13

Normative statements describe how the world is, while positive statements prescribe how the world should be.

Accepted Answer

A) True 
 B)False

Question 14

A normative economic statement such as "The minimum wage should be abolished"

Accepted Answer

A) would likely be made by an economist acting as a scientist. 
B) would require values and data in order to be evaluated. 
C) would require data but not values in order to be evaluated. 
D) could not be evaluated by economists acting as policy advisers. 
A) would likely be made by an economist acting as a scientist. 
B) would require values and data in order to be evaluated. 
C) would require data but not values in order to be evaluated. 
D) could not be evaluated by economists acting as policy advisers.

Question 15

With respect to how economists study the economy, which of the following statements is most accurate?

Accepted Answer

A) Economists study the past, but they do not try to predict the future. 
B) Economists use "rules of thumb" to predict the future. 
C) Economists devise theories, collect data, and analyse the data to test the theories. 
D) Economists use controlled experiments in much the same way that biologists and physicists do. 
A) Economists study the past, but they do not try to predict the future. 
B) Economists use "rules of thumb" to predict the future. 
C) Economists devise theories, collect data, and analyse the data to test the theories. 
D) Economists use controlled experiments in much the same way that biologists and physicists do.

Question 16

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Accepted Answer

A) True 
 B)False

Question 17

When an economist evaluates a positive statement, he or she is primarily

Accepted Answer

A) examining evidence. 
B) evaluating values as well as facts. 
C) acting as a policy adviser. 
D) concerned with making a sound decision on how the world ought to be. 
A) examining evidence. 
B) evaluating values as well as facts. 
C) acting as a policy adviser. 
D) concerned with making a sound decision on how the world ought to be.

Question 18

An economic model

Accepted Answer

A) uses equations to understand normative economic phenomena. 
B) often omits crucial elements. 
C) simplifies reality in order to focus on crucial elements. 
D) cannot be proven wrong. 
A) uses equations to understand normative economic phenomena. 
B) often omits crucial elements. 
C) simplifies reality in order to focus on crucial elements. 
D) cannot be proven wrong.

Question 19

In building economic models, economists often omit

Accepted Answer

A) assumptions. 
B) theories. 
C) details. 
D) equations. 
A) assumptions. 
B) theories. 
C) details. 
D) equations.

Question 20

Economists tend to disagree because of differences:

Accepted Answer

A) only in scientific judgments. 
B) only in value judgments. 
C) in both value and scientific judgments. 
D) None of the above. 
A) only in scientific judgments. 
B) only in value judgments. 
C) in both value and scientific judgments. 
D) None of the above.

Economic models omit many details to allow us to see what is truly important.

What is feminist economics?

Which of the following activities would occur in a market for goods and services?

Which of the following is an example of a positive, as opposed to normative, statement?

Models are also inherently unstable when they extend to

Economists devise theories, collect data, and then analyse these data in an attempt to verify or refute their theories.

Explain some of the underlying assumptions of the Austrian School of economics?

Economists make assumptions in order to

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

A statement describing how the world is now

Economists regard events from the past as

If money growth and inflation were strongly correlated in international data, the economist would become more ___________ in a theory linking the two.

Normative statements describe how the world is, while positive statements prescribe how the world should be.

A normative economic statement such as "The minimum wage should be abolished"

With respect to how economists study the economy, which of the following statements is most accurate?

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

When an economist evaluates a positive statement, he or she is primarily

An economic model

In building economic models, economists often omit

Economists tend to disagree because of differences:

What Is Economics

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters

Exam 2: Thinking Like an Economist

Economic models omit many details to allow us to see what is truly important.

What is feminist economics?

Which of the following activities would occur in a market for goods and services?

Which of the following is an example of a positive, as opposed to normative, statement?

Models are also inherently unstable when they extend to

Economists devise theories, collect data, and then analyse these data in an attempt to verify or refute their theories.

Explain some of the underlying assumptions of the Austrian School of economics?

Economists make assumptions in order to

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

A statement describing how the world is now

Economists regard events from the past as

If money growth and inflation were strongly correlated in international data, the economist would become more ___________ in a theory linking the two.

Normative statements describe how the world is, while positive statements prescribe how the world should be.

A normative economic statement such as "The minimum wage should be abolished"

With respect to how economists study the economy, which of the following statements is most accurate?

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

When an economist evaluates a positive statement, he or she is primarily

An economic model

In building economic models, economists often omit

Economists tend to disagree because of differences:

What Is Economics

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters