Question 1

The Law of Demand states

Accepted Answer

A) that there is an inverse relationship between price and quantity demanded. 
B) that the judicial branch of government sets demand schedules. 
C) that laws can have no effect on market economies. 
D) none of the above. 
A) that there is an inverse relationship between price and quantity demanded. 
B) that the judicial branch of government sets demand schedules. 
C) that laws can have no effect on market economies. 
D) none of the above. A

Question 2

Equilibrium in the market is where supply is equal to demand.

Accepted Answer

A) True 
 B)False  True

Question 3

Imagine that the demand for concert tickets can be characterized by the equation Xd = 14 - P/3.The supply of tickets can be written as Xs = P/4.Find the equilibrium price and quantity of concert tickets.

Accepted Answer

X* = 6,P* = 24

Question 4

Discuss the concept in econometrics that states,"garbage in ...garbage out."

Accepted Answer

When the data used in an econometric ana

Question 5

Panel data requires

Accepted Answer

A) data on individual entities. 
B) time. 
C) neither a nor b. 
D) both a and b. 
A) data on individual entities. 
B) time. 
C) neither a nor b. 
D) both a and b.

Question 6

If there is a function and one component is Y3,then there is a ____ in the function.

Accepted Answer

A) square root 
B) cubic 
C) cosine 
D) circle 
A) square root 
B) cubic 
C) cosine 
D) circle

Question 7

If there is a function and one component is YS1U1P13S1S1P0,then there is a ____ in the function.
-The equation containing Y3 would be

Accepted Answer

A) linear. 
B) quadratic. 
C) a Nash equilibrium. 
D) inefficient. 
E) nonlinear. 
A) linear. 
B) quadratic. 
C) a Nash equilibrium. 
D) inefficient. 
E) nonlinear.

Question 8

It is possible that two different economists can examine the same situation,such as school funding,and reach entirely different conclusions.Why is this so?

Accepted Answer

Reasoning resulting in differing results

Question 9

Marginal and average taxes are

Accepted Answer

A) calculated using the same methodology. 
B) not used in modern tax analysis. 
C) not calculated using the same methodology. 
D) all of the above. 
A) calculated using the same methodology. 
B) not used in modern tax analysis. 
C) not calculated using the same methodology. 
D) all of the above.

Question 10

Econometrics is the statistical analysis of economic data.

Accepted Answer

A) True 
 B)False

Question 11

Unobserved influences on a regression are captured in the

Accepted Answer

A) error term. 
B) parameters. 
C) regression line. 
D) regression coefficient. 
A) error term. 
B) parameters. 
C) regression line. 
D) regression coefficient.

Question 12

Economists attempt,with moderate success,to perform controlled experiments making policy analysis helpful.

Accepted Answer

A) True 
 B)False

Question 13

The substitution effect

Accepted Answer

A) is when individuals consume more of one good and less of another. 
B) is associated with changes in relative prices. 
C) will have no effect if goods are unrelated. 
D) is all of the above. 
A) is when individuals consume more of one good and less of another. 
B) is associated with changes in relative prices. 
C) will have no effect if goods are unrelated. 
D) is all of the above.

Question 14

Instrumental variables requires that the variable not be correlated with the outcome variable

Accepted Answer

A) True 
 B)False

Question 15

The function Y = f(X,Z)means

Accepted Answer

A) X multiplied by Y equals f. 
B) X + Y = Z. 
C) Y is a function of both X and Z. 
D) none of the above. 
A) X multiplied by Y equals f. 
B) X + Y = Z. 
C) Y is a function of both X and Z. 
D) none of the above.

Question 16

Suppose that a competitive firm's marginal cost of producing output q is given by MC=2+2q.Assume that the market price of the firm's product is $13.
A)What level of output will the firm produce?
B)What is the firm's producer surplus?

Accepted Answer

q = 11/2.P

Question 17

The slope of a regression line is calculated by dividing

Accepted Answer

A) the intercept by the change in horizontal distance. 
B) the change in horizontal distance by the change in vertical distance. 
C) the change in horizontal distance by the intercept term. 
D) the change in vertical distance by the change in horizontal distance. 
E) none of the above. 
A) the intercept by the change in horizontal distance. 
B) the change in horizontal distance by the change in vertical distance. 
C) the change in horizontal distance by the intercept term. 
D) the change in vertical distance by the change in horizontal distance. 
E) none of the above.

Question 18

Empirical analysis generally deals with theory and little data.

Accepted Answer

A) True 
 B)False

Question 19

"Since the social sciences are not like the natural sciences,experiments are a waste of time." Comment on the above statement.

Accepted Answer

It is true that social sciences are not

Question 20

Self?selection bias affects empirical estimation by

Accepted Answer

A) leading to samples that are not representative of the entire population. 
B) making estimators improved. 
C) increasing the accuracy of test results. 
D) doing none of the above. 
A) leading to samples that are not representative of the entire population. 
B) making estimators improved. 
C) increasing the accuracy of test results. 
D) doing none of the above.

Exam 2: Tools of Positive Analysis

The Law of Demand states

Equilibrium in the market is where supply is equal to demand.

Imagine that the demand for concert tickets can be characterized by the equation Xd = 14 - P/3.The supply of tickets can be written as Xs = P/4.Find the equilibrium price and quantity of concert tickets.

Discuss the concept in econometrics that states,"garbage in ...garbage out."

Panel data requires

If there is a function and one component is Y3,then there is a ____ in the function.

If there is a function and one component is Y3,then there is a ____ in the function. -The equation containing Y3 would be

It is possible that two different economists can examine the same situation,such as school funding,and reach entirely different conclusions.Why is this so?

Marginal and average taxes are

Econometrics is the statistical analysis of economic data.

Unobserved influences on a regression are captured in the

Economists attempt,with moderate success,to perform controlled experiments making policy analysis helpful.

The substitution effect

Instrumental variables requires that the variable not be correlated with the outcome variable

The function Y = f(X,Z)means

Suppose that a competitive firm's marginal cost of producing output q is given by MC=2+2q.Assume that the market price of the firm's product is $13. A)What level of output will the firm produce? B)What is the firm's producer surplus?

The slope of a regression line is calculated by dividing

Empirical analysis generally deals with theory and little data.

"Since the social sciences are not like the natural sciences,experiments are a waste of time." Comment on the above statement.

Self?selection bias affects empirical estimation by

Introduction

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Imagine that the demand for concert tickets can be characterized by the equation X_d = 14 - P/3.The supply of tickets can be written as X_s= P/4.Find the equilibrium price and quantity of concert tickets.

If there is a function and one component is Y³,then there is a ____ in the function.

If there is a function and one component is Y³,then there is a ____ in the function. -The equation containing Y³would be