Question 1

Which of the following statements is true?

Accepted Answer

A)  Arguments based on anecdotes are always true. 
B)  In the scientific method, anecdotes are more important than data. 
C)  Arguments by example are appropriate when contradicting a blanket statement. 
D)  It is easier for a researcher to jump to a wrong conclusion when she uses a large data set. 
A)  Arguments based on anecdotes are always true. 
B)  In the scientific method, anecdotes are more important than data. 
C)  Arguments by example are appropriate when contradicting a blanket statement. 
D)  It is easier for a researcher to jump to a wrong conclusion when she uses a large data set. C

Question 2

An independent variable ________.

Accepted Answer

A)  cannot be measured 
B)  cannot be represented on a bar chart 
C)  is manipulated by the experimenter in an experiment 
D)  is determined by the other variables in an experiment 
A)  cannot be measured 
B)  cannot be represented on a bar chart 
C)  is manipulated by the experimenter in an experiment 
D)  is determined by the other variables in an experiment C

Question 3

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Accepted Answer

A)  a zero correlation 
B)  a causal relationship 
C)  a positive correlation 
D)  a negative correlation 
A)  a zero correlation 
B)  a causal relationship 
C)  a positive correlation 
D)  a negative correlation C

Question 4

Empirical evidence refers to ________.

Accepted Answer

A)  a simplified representation of reality 
B)  a proposed explanation for a phenomenon 
C)  the process of developing and testing models 
D)  a set of facts established by observation and measurement 
A)  a simplified representation of reality 
B)  a proposed explanation for a phenomenon 
C)  the process of developing and testing models 
D)  a set of facts established by observation and measurement

Question 5

An economic model suggests that for every additional year of education,an individual's future wages increase by 5 percent.If Richard,with 12 years of education,earns $20 per hour,how much will he earn per hour if he decides to undertake 4 additional years of education?

Accepted Answer

The model suggests that if Richard earns

Question 6

The scientific method refers to the process by which economists and other scientists ________.

Accepted Answer

A)  collect data for further use in research 
B)  develop models of the world and test those models with data 
C)  develop models to explain the past but not to predict the future 
D)  plot graphs to illustrate relationships between different economic variables 
A)  collect data for further use in research 
B)  develop models of the world and test those models with data 
C)  develop models to explain the past but not to predict the future 
D)  plot graphs to illustrate relationships between different economic variables

Question 7

Which of the following is an example of a natural experiment?

Accepted Answer

A)  A laboratory research on the effectiveness of solar power as an alternative source of fuel 
B)  A research on the effectiveness of a new medicine among some voluntary participants 
C)  A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries 
D)  A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants 
A)  A laboratory research on the effectiveness of solar power as an alternative source of fuel 
B)  A research on the effectiveness of a new medicine among some voluntary participants 
C)  A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries 
D)  A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants

Question 8

What is meant by the term "omitted variable" in correlation analysis? Explain with an example.

Accepted Answer

An omitted variable is something that ha

Question 9

A variable that is potentially affected by an experimental treatment is referred to as a(n)________.

Accepted Answer

A)  omitted variable 
B)  independent variable 
C)  dependent variable 
D)  compulsory variable 
A)  omitted variable 
B)  independent variable 
C)  dependent variable 
D)  compulsory variable

Question 10

What is meant by the term "scientific method?" What are the key components of the scientific method?

Accepted Answer

The scientific method is the name for th

Question 11

When two variables move in opposite directions,they are said to be ________.

Accepted Answer

A)  uncorrelated 
B)  positively correlated 
C)  negatively correlated 
D)  equivalent 
A)  uncorrelated 
B)  positively correlated 
C)  negatively correlated 
D)  equivalent

Question 12

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

Accepted Answer

A key feature of economic and statistica

Question 13

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent.
-Refer to the scenario above.Which of the following statements is true about the model?

Accepted Answer

A)  The model is not based on any assumption. 
B)  The predictions of the model will hold for every individual. 
C)  The model describes the economic payoff of more education. 
D)  The model can be applied for a maximum of 10 years of additional education. 
A)  The model is not based on any assumption. 
B)  The predictions of the model will hold for every individual. 
C)  The model describes the economic payoff of more education. 
D)  The model can be applied for a maximum of 10 years of additional education.

Question 14

What are the three categories of correlation? Illustrate with real-life examples.

Accepted Answer

Correlation can be divided into three ca

Question 15

Which of the following claims is most likely to suffer from reverse causality?

Accepted Answer

A)  Higher income increases consumption. 
B)  Relatively wealthy people tend to be relatively healthy. 
C)  More hours of study are likely to lead to better results. 
D)  Crime rate is seen to be lower in countries having a higher level of poverty. 
A)  Higher income increases consumption. 
B)  Relatively wealthy people tend to be relatively healthy. 
C)  More hours of study are likely to lead to better results. 
D)  Crime rate is seen to be lower in countries having a higher level of poverty.

Question 16

An economic model suggests that an additional year of education increases a student's future wages by 15 percent.Using this model,answer the following questions.
a)Gary completes 8 years of education,and John completes 9 years of education.If Gary earns $20 per hour,how much is John expected to earn?
b)John completes 9 years of education,and Kevin completes 12 years of education.Given John's earnings (as calculated in part a),how much is Kevin expected to earn?
c)Is there any limitation to such a model? Explain your answer.

Accepted Answer

a)The economic model suggests that an ad

Question 17

Causation occurs when ________.

Accepted Answer

A)  two variables tend to move in the same direction 
B)  two variables tend to move in opposite directions 
C)  a change in one variable is the reason for a change in another variable 
D)  a change in one variable does not cause any change in another variable 
A)  two variables tend to move in the same direction 
B)  two variables tend to move in opposite directions 
C)  a change in one variable is the reason for a change in another variable 
D)  a change in one variable does not cause any change in another variable

Question 18

Which of the following statements is true?

Accepted Answer

A)  A bar chart has many limitations in comparison to pie charts. 
B)  A bar chart does not allow for the comparison of a single variable across many segments. 
C)  A bar chart can only be used to represent independent variables. 
D)  A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths. 
A)  A bar chart has many limitations in comparison to pie charts. 
B)  A bar chart does not allow for the comparison of a single variable across many segments. 
C)  A bar chart can only be used to represent independent variables. 
D)  A bar chart indicates the frequency of a variable by using rectangles of different heights or lengths.

Question 19

Randomization is the assignment of subjects by ________ to a ________.

Accepted Answer

A)  chance, rather than by choice; treatment group or to a test group 
B)  choice, rather than by chance; treatment group or to a test group 
C)  choice, rather than by chance; treatment group or to a control group 
D)  chance, rather than by choice; treatment group or to a control group 
A)  chance, rather than by choice; treatment group or to a test group 
B)  choice, rather than by chance; treatment group or to a test group 
C)  choice, rather than by chance; treatment group or to a control group 
D)  chance, rather than by choice; treatment group or to a control group

Question 20

Which of the following is a feature of models?

Accepted Answer

A)  Models are the same as hypotheses. 
B)  Models help in making predictions for the future. 
C)  Models are more complicated than real life phenomena. 
D)  Models are as complex as the phenomenon being studied. 
A)  Models are the same as hypotheses. 
B)  Models help in making predictions for the future. 
C)  Models are more complicated than real life phenomena. 
D)  Models are as complex as the phenomenon being studied.

Which of the following statements is true?

An independent variable ________.

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Empirical evidence refers to ________.

An economic model suggests that for every additional year of education,an individual's future wages increase by 5 percent.If Richard,with 12 years of education,earns $20 per hour,how much will he earn per hour if he decides to undertake 4 additional years of education?

The scientific method refers to the process by which economists and other scientists ________.

Which of the following is an example of a natural experiment?

What is meant by the term "omitted variable" in correlation analysis? Explain with an example.

A variable that is potentially affected by an experimental treatment is referred to as a(n)________.

What is meant by the term "scientific method?" What are the key components of the scientific method?

When two variables move in opposite directions,they are said to be ________.

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent. -Refer to the scenario above.Which of the following statements is true about the model?

What are the three categories of correlation? Illustrate with real-life examples.

Which of the following claims is most likely to suffer from reverse causality?

Causation occurs when ________.

Which of the following statements is true?

Randomization is the assignment of subjects by to a .

Which of the following is a feature of models?

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 2: Economic Methods and Economic Questions

Which of the following statements is true?

An independent variable ________.

Data show that in 2012,the college enrollment in Lithasia increased.In the same year,the sale of hot dogs in Lithasia also increased.The relationship between college enrollment and the sale of hot dogs exhibits ________.

Empirical evidence refers to ________.

An economic model suggests that for every additional year of education,an individual's future wages increase by 5 percent.If Richard,with 12 years of education,earns $20 per hour,how much will he earn per hour if he decides to undertake 4 additional years of education?

The scientific method refers to the process by which economists and other scientists ________.

Which of the following is an example of a natural experiment?

What is meant by the term "omitted variable" in correlation analysis? Explain with an example.

A variable that is potentially affected by an experimental treatment is referred to as a(n)________.

What is meant by the term "scientific method?" What are the key components of the scientific method?

When two variables move in opposite directions,they are said to be ________.

To judge a statistical relationship,should a researcher rely on a small sample or a large sample? Explain your answer.

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent. -Refer to the scenario above.Which of the following statements is true about the model?

What are the three categories of correlation? Illustrate with real-life examples.

Which of the following claims is most likely to suffer from reverse causality?

Causation occurs when ________.

Which of the following statements is true?

Randomization is the assignment of subjects by ________ to a ________.

Which of the following is a feature of models?

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Randomization is the assignment of subjects by to a .