Question 1

History shows us that there have always been __________ among scientists about truth and reality.

Accepted Answer

A) consistency 
B) uniformity 
C) agreements 
D) disagreements 
A) consistency 
B) uniformity 
C) agreements 
D) disagreements

Question 2

If economic models have so many limitations, why do economists continue to use them?

Accepted Answer

Economic models help us to simplify real

Question 3

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 4

The goal of an economist who formulates new theories is to

Accepted Answer

A) provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. 
B) provoke stimulating debate in scientific journals. 
C) contribute to an understanding of how the world works. 
D) demonstrate that economists, like other scientists, can formulate testable theories. 
A) provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. 
B) provoke stimulating debate in scientific journals. 
C) contribute to an understanding of how the world works. 
D) demonstrate that economists, like other scientists, can formulate testable theories.

Question 5

Is it fair that people earning in excess of r₁ 500 000 a year should pay a much higher tax rate on income above this level? Explain your answer.

Accepted Answer

There is no one correct answer

Question 6

Why do economists disagree?

Accepted Answer

Economists disagree about the validity o

Question 7

Because economics is a science that is centred on _________, it is not always possible to conduct experiments in the same way in which as the physical sciences do.

Accepted Answer

A) human behaviour 
B) consumer behaviour 
C) organisational behaviour 
D) conjoint analysis 
A) human behaviour 
B) consumer behaviour 
C) organisational behaviour 
D) conjoint analysis

Question 8

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

Accepted Answer

A) Petrol prices ought to be lower than they are now. 
B) The government should raise taxes on wealthy people. 
C) The social security system is a good system and it deserves to be preserved as it is. 
D) All of the above are normative statements. 
A) Petrol prices ought to be lower than they are now. 
B) The government should raise taxes on wealthy people. 
C) The social security system is a good system and it deserves to be preserved as it is. 
D) All of the above are normative statements.

Question 9

Economists have helped modify the debate over the environment

Accepted Answer

A) by pointing out that nature is invaluable. 
B) by focusing discussion on issues of resource allocation. 
C) by lobbying for pollution legislation. 
D) by arguing against tradeable permits for pollution. 
A) by pointing out that nature is invaluable. 
B) by focusing discussion on issues of resource allocation. 
C) by lobbying for pollution legislation. 
D) by arguing against tradeable permits for pollution.

Question 10

The distinction between positive and normative economics

Accepted Answer

A) is that positive economics applies only to microeconomic problems. 
B) is that normative economics applies only to microeconomic problems. 
C) explains why economics is not a social science but a natural science. 
D) helps us to understand why economists sometimes disagree with one another. 
A) is that positive economics applies only to microeconomic problems. 
B) is that normative economics applies only to microeconomic problems. 
C) explains why economics is not a social science but a natural science. 
D) helps us to understand why economists sometimes disagree with one another.

Question 11

Economists may have different values and, therefore, different ___________ about what policy should try to accomplish.

Accepted Answer

A) normative views 
B) positive views 
C) individual views 
D) correlated views 
A) normative views 
B) positive views 
C) individual views 
D) correlated views

Question 12

Economists, like mathematicians, physicists and biologists,

Accepted Answer

A) make use of the scientific method. 
B) try to address their subject with a scientist's objectivity. 
C) devise theories, collect data, and then analyse these data in an attempt to verify or refute their theories. 
D) All of the above are correct. 
A) make use of the scientific method. 
B) try to address their subject with a scientist's objectivity. 
C) devise theories, collect data, and then analyse these data in an attempt to verify or refute their theories. 
D) All of the above are correct.

Question 13

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

Accepted Answer

A) If the price of a product decreases, people's willingness to buy that product will increase. 
B) Reducing tax rates on the wealthy would benefit the nation. 
C) If the national saving rate were to increase, so would the rate of economic growth. 
D) The elimination of trade restrictions would increase an economy's standard of living. 
A) If the price of a product decreases, people's willingness to buy that product will increase. 
B) Reducing tax rates on the wealthy would benefit the nation. 
C) If the national saving rate were to increase, so would the rate of economic growth. 
D) The elimination of trade restrictions would increase an economy's standard of living.

Question 14

Normative conclusions

Accepted Answer

A) come from positive analysis alone. 
B) are based on ignorance of positive analysis. 
C) involve value judgments. 
D) reflect the economist's role as scientist. 
A) come from positive analysis alone. 
B) are based on ignorance of positive analysis. 
C) involve value judgments. 
D) reflect the economist's role as scientist.

History shows us that there have always been __________ among scientists about truth and reality.

If economic models have so many limitations, why do economists continue to use them?

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

The goal of an economist who formulates new theories is to

Is it fair that people earning in excess of r₁ 500 000 a year should pay a much higher tax rate on income above this level? Explain your answer.

Why do economists disagree?

Because economics is a science that is centred on _________, it is not always possible to conduct experiments in the same way in which as the physical sciences do.

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

Economists have helped modify the debate over the environment

The distinction between positive and normative economics

Economists may have different values and, therefore, different ___________ about what policy should try to accomplish.

Economists, like mathematicians, physicists and biologists,

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

Normative conclusions

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

History shows us that there have always been __________ among scientists about truth and reality.

If economic models have so many limitations, why do economists continue to use them?

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

The goal of an economist who formulates new theories is to

Is it fair that people earning in excess of r₁ 500 000 a year should pay a much higher tax rate on income above this level? Explain your answer.

Why do economists disagree?

Because economics is a science that is centred on _________, it is not always possible to conduct experiments in the same way in which as the physical sciences do.

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

Economists have helped modify the debate over the environment

The distinction between positive and normative economics

Economists may have different values and, therefore, different ___________ about what policy should try to accomplish.

Economists, like mathematicians, physicists and biologists,

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

Normative conclusions

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