Question 1

An experiment refers to ________.

Accepted Answer

A)  a simplified representation of some real-life phenomenon 
B)  the process of collecting, measuring, and organizing data 
C)  validating the claims of a model using statistics and facts 
D)  a controlled method of investigating causal relationships among variables 
A)  a simplified representation of some real-life phenomenon 
B)  the process of collecting, measuring, and organizing data 
C)  validating the claims of a model using statistics and facts 
D)  a controlled method of investigating causal relationships among variables D

Question 2

Which of the following graphical representations is ideal for comparing a single variable across different groups?

Accepted Answer

A)  A histogram 
B)  A bar chart 
C)  A scatter plot 
D)  A time series graph 
A)  A histogram 
B)  A bar chart 
C)  A scatter plot 
D)  A time series graph B

Question 3

What are the problems with experimentation?

Accepted Answer

There are three main problems associated with experimentation:
i)Experiments can be very costly to conduct.
ii)Experiments do not provide immediate answers to a number of important questions.
iii)Experiments are sometimes conducted poorly,which can lead to inefficient results.

Question 4

Empiricism refers to using ________ to analyze the world.

Accepted Answer

A)  data 
B)  beliefs 
C)  traditions 
D)  value judgments 
A)  data 
B)  beliefs 
C)  traditions 
D)  value judgments

Question 5

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 6

A circular chart split into segments to show the percentages of parts relative to the whole is called ________.

Accepted Answer

A)  a histogram 
B)  a time-series graph 
C)  a pie chart 
D)  a bar chart 
A)  a histogram 
B)  a time-series graph 
C)  a pie chart 
D)  a bar chart

Question 7

Which of the following statements is true?

Accepted Answer

A)  Theories are statistics that describe the real world. 
B)  Hypotheses are predictions that can be tested with data. 
C)  Data are facts established by observation and measurement. 
D)  Empirical evidence consists of facts, measurements, or statistics that describe the world. 
A)  Theories are statistics that describe the real world. 
B)  Hypotheses are predictions that can be tested with data. 
C)  Data are facts established by observation and measurement. 
D)  Empirical evidence consists of facts, measurements, or statistics that describe the world.

Question 8

Which of the following is a property of a good economic question?

Accepted Answer

A)  A good economic question can be answered. 
B)  A good economic question should always have a single solution. 
C)  A good economic question always addresses topics that are important to the whole society and not to an individual economic agent. 
D)  A good economic question should never incorporate elements from disciplines other than economics. 
A)  A good economic question can be answered. 
B)  A good economic question should always have a single solution. 
C)  A good economic question always addresses topics that are important to the whole society and not to an individual economic agent. 
D)  A good economic question should never incorporate elements from disciplines other than economics.

Question 9

Which of the following statements correctly indicates a property of good economic questions?

Accepted Answer

A)  A good economic question should always be easy to answer. 
B)  A good economic question should always be positive and not normative. 
C)  A good economic question must always include arithmetic calculations and graphical solutions. 
D)  A good economic question addresses topics that are important to economic agents and/or to society. 
A)  A good economic question should always be easy to answer. 
B)  A good economic question should always be positive and not normative. 
C)  A good economic question must always include arithmetic calculations and graphical solutions. 
D)  A good economic question addresses topics that are important to economic agents and/or to society.

Question 10

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 11

Which of the following is a key property of models?

Accepted Answer

A)  All economic models begin with assumptions. 
B)  Empiricism is not essential for testing models. 
C)  All models can be used for a limited time only. 
D)  All models are consistent and do not make incorrect predictions. 
A)  All economic models begin with assumptions. 
B)  Empiricism is not essential for testing models. 
C)  All models can be used for a limited time only. 
D)  All models are consistent and do not make incorrect predictions.

Question 12

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 13

Reverse causality can create confusion between correlation and causation.What does reverse causality imply?

Accepted Answer

Reverse causality is said to happen when

Question 14

Which of the following statements is true about the mean of a series?

Accepted Answer

A)  The mean is equal to zero when all the values are identical. 
B)  The mean is a commonly used technique for summarizing data. 
C)  The mean is less than all the individual observations in the data set. 
D)  The mean is calculated as the sum of all values multiplied by the number of values. 
A)  The mean is equal to zero when all the values are identical. 
B)  The mean is a commonly used technique for summarizing data. 
C)  The mean is less than all the individual observations in the data set. 
D)  The mean is calculated as the sum of all values multiplied by the number of values.

Question 15

A model refers to ________.

Accepted Answer

A)  a perfect replica of reality 
B)  a simplified description, or representation, of reality 
C)  facts, measurements, or statistics that describe the world 
D)  a set of facts established by observation and measurement 
A)  a perfect replica of reality 
B)  a simplified description, or representation, of reality 
C)  facts, measurements, or statistics that describe the world 
D)  a set of facts established by observation and measurement

Question 16

To conduct a randomized experiment,researchers usually classify the participants into a ________.

Accepted Answer

A)  study group and a control group 
B)  treatment group and a test group 
C)  study group and a treatment group 
D)  treatment group and a control group 
A)  study group and a control group 
B)  treatment group and a test group 
C)  study group and a treatment group 
D)  treatment group and a control group

Question 17

________ occurs when the direction of cause and effect is mixed up in a study.

Accepted Answer

A)  Adverse causality 
B)  Reverse causality 
C)  Omitted variable bias 
D)  Limited information bias 
A)  Adverse causality 
B)  Reverse causality 
C)  Omitted variable bias 
D)  Limited information bias

Question 18

Which of the following statements is true?

Accepted Answer

A)  Models that economists use are perfect replicas of reality. 
B)  The scientific method used by economists is based on idealism and not empiricism. 
C)  Models help economists explain the past but do not help predict the future. 
D)  Testing with data enables economists to distinguish between good models and bad models. 
A)  Models that economists use are perfect replicas of reality. 
B)  The scientific method used by economists is based on idealism and not empiricism. 
C)  Models help economists explain the past but do not help predict the future. 
D)  Testing with data enables economists to distinguish between good models and bad models.

Question 19

Which of the following graphical representations can be used most appropriately to show the distribution of a household's income,in terms of percentages,among the various categories of expenses?

Accepted Answer

A)  A bar chart 
B)  A pie chart 
C)  A histogram chart 
D)  A time-series graph 
A)  A bar chart 
B)  A pie chart 
C)  A histogram chart 
D)  A time-series graph

Question 20

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

An experiment refers to ________.

Which of the following graphical representations is ideal for comparing a single variable across different groups?

What are the problems with experimentation?

Empiricism refers to using ________ to analyze the world.

Empirical evidence refers to ________.

A circular chart split into segments to show the percentages of parts relative to the whole is called ________.

Which of the following statements is true?

Which of the following is a property of a good economic question?

Which of the following statements correctly indicates a property of good economic questions?

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?

Which of the following is a key property of models?

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?

Reverse causality can create confusion between correlation and causation.What does reverse causality imply?

Which of the following statements is true about the mean of a series?

A model refers to ________.

To conduct a randomized experiment,researchers usually classify the participants into a ________.

________ occurs when the direction of cause and effect is mixed up in a study.

Which of the following statements is true?

Which of the following graphical representations can be used most appropriately to show the distribution of a household's income,in terms of percentages,among the various categories of expenses?

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

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Exam 2: Economic Methods and Economic Questions

An experiment refers to ________.

Which of the following graphical representations is ideal for comparing a single variable across different groups?

What are the problems with experimentation?

Empiricism refers to using ________ to analyze the world.

Empirical evidence refers to ________.

A circular chart split into segments to show the percentages of parts relative to the whole is called ________.

Which of the following statements is true?

Which of the following is a property of a good economic question?

Which of the following statements correctly indicates a property of good economic questions?

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?

Which of the following is a key property of models?

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?

Reverse causality can create confusion between correlation and causation.What does reverse causality imply?

Which of the following statements is true about the mean of a series?

A model refers to ________.

To conduct a randomized experiment,researchers usually classify the participants into a ________.

________ occurs when the direction of cause and effect is mixed up in a study.

Which of the following statements is true?

Which of the following graphical representations can be used most appropriately to show the distribution of a household's income,in terms of percentages,among the various categories of expenses?

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

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters