Question 1

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) All of the predictions given here are possible predictions of the theory on baseball caps and cheating. 
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) All of the predictions given here are possible predictions of the theory on baseball caps and cheating.

Question 2

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 3

If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong, it is said to have the virtue of falsifiability.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Situation 33-1 Suppose that the equation that represents the expected benefits of burglary for a given prospective criminal is as follows:
EB = Ps x Loot
The criminal's cost equation is as follows:
EC = [Pp x (I + F)] +  AC
Where:
EB is the expected benefits of burglary
Ps is the probability of successfully burglarizing a house
Loot is the dollar take from the burglary  
EC is the expected costs of burglary
Pp is the probability of imprisonment
I is the income the criminal gives up if caught and imprisoned
F is the dollar value the criminal puts on freedom
AC is the anguish cost of committing a burglary
Refer to Situation 33-1.  If the prospective criminal sets the following values:
Ps = 50 percent
Loot = $30,000
Pp = 10 percent
I = $10,000
F = $25,000
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) $15,000; $8,500; will 
B) $15,000; $8,500; will not 
C) $15,000; $40,000; will not 
D) $17,500; $12,000; will 
A) $15,000; $8,500; will 
B) $15,000; $8,500; will not 
C) $15,000; $40,000; will not 
D) $17,500; $12,000; will

Question 6

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

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 inversely related to the expected cost of committing a burglary. 
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 inversely related to the expected cost of committing a burglary.

Question 7

Theories should be judged based upon how consistently and precisely they predict and how well they explain things.

Accepted Answer

A) True 
 B)False

Question 8

In the burglary crime model presented in the textbook, 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 9

The ______________ the gap between the tuition a college student pays and the equilibrium tuition for that college,  _____________ likelihood the student's instructors will be on time and attentive during their office hours.

Accepted Answer

A) larger; there is no 
B) smaller; the greater the 
C) larger; the greater the 
D) smaller; the lower the 
A) larger; there is no 
B) smaller; the greater the 
C) larger; the greater the 
D) smaller; the lower the

Question 10

Theories should be judged based upon how

Accepted Answer

A) whether they are created by public sector workers or private sector workers. 
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. 
A) whether they are created by public sector workers or private sector workers. 
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.

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

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) fails to accept the theory 
A) fails to reject the theory 
B) proves the theory is correct 
C) proves the theory is invalid 
D) fails to accept the theory

Question 13

A person who lives in a good-climate city says, "It's expensive to live here, but at least the climate is free."  In terms of a theory advanced in the textbook, this person has either forgotten or is unaware that

Accepted Answer

A) New York City is not a good-climate city and it is expensive to live there. In other words, not all good-climate cities are expensive and not all bad-climate cities are cheap. 
B) part of the reason it's expensive to live in the city is because of the good climate. 
C) good-climate cities have more outdoor entertainment entities and activities and therefore  people have to pay higher taxes to support those entities and activities. 
D) there is a sunshine tax in most of the country - the more hours of sunshine a day, the higher the tax. 
A) New York City is not a good-climate city and it is expensive to live there. In other words, not all good-climate cities are expensive and not all bad-climate cities are cheap. 
B) part of the reason it's expensive to live in the city is because of the good climate. 
C) good-climate cities have more outdoor entertainment entities and activities and therefore  people have to pay higher taxes to support those entities and activities. 
D) there is a sunshine tax in most of the country - the more hours of sunshine a day, the higher the tax.

Question 14

Which of the following statements 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 15

"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

Accepted Answer

A) believes that theories should be tested by gathering and analyzing data. 
B) believes that theories are not descriptive of reality. 
C) believes theories should be falsifiable or refutable. 
D) does not understand that one's own beliefs about a theory do not necessarily make a theory valid or invalid. 
A) believes that theories should be tested by gathering and analyzing data. 
B) believes that theories are not descriptive of reality. 
C) believes theories should be falsifiable or refutable. 
D) does not understand that one's own beliefs about a theory do not necessarily make a theory valid or invalid.

Question 16

A theory is a perfect description of reality.

Accepted Answer

A) True 
 B)False

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) any of the scenarios presented here could be correct. 
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) any of the scenarios presented here could be correct.

Question 18

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. 
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.

Question 19

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

Accepted Answer

The first step in building and testing t

Question 20

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) There is not enough information provided to answer the question. 
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) There is not enough information provided to answer the question.

Exam 19: Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

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.

If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong, it is said to have the virtue of falsifiability.

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.

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

Theories should be judged based upon how consistently and precisely they predict and how well they explain things.

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

The ______________ the gap between the tuition a college student pays and the equilibrium tuition for that college, _____________ likelihood the student's instructors will be on time and attentive during their office hours.

Theories should be judged based upon how

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.

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

A person who lives in a good-climate city says, "It's expensive to live here, but at least the climate is free." In terms of a theory advanced in the textbook, this person has either forgotten or is unaware that

Which of the following statements is false ?

"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

A theory is a perfect description of reality.

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

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

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

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

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, Union, 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

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters

The __ the gap between the tuition a college student pays and the equilibrium tuition for that college, _ likelihood the student's instructors will be on time and attentive during their office hours.