Question 1

House A has an ocean view and House B does not.In all other respects,the two houses are the same.The market price of house A is $2,300,000;the market price of house B is $1,600,000.The ocean view is valued at

Accepted Answer

A)  $700,000. 
B)  $1,950,000. 
C)  -$700,000. 
D)  $600,000.

Question 2

"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 believes that

Accepted Answer

A)  theories should be tested by gathering and analyzing data. 
B)  theories are descriptive of reality. 
C)  theories should be falsifiable or refutable. 
D)  b and c 
E)  none of the above

Question 3

A gift-giver's efficient number of gifts (to give to a gift-recipient)has fallen from 10 to 8.This could be because

Accepted Answer

A)  the gift-giver's marginal benefit curve for giving gifts shifted down and left. 
B)  the gift-giver's marginal cost curve of giving gifts shifted up and left. 
C)  the gift-recipient "fell out" of the gift-giver's utility function. 
D)  a and b 
E)  none of the above

Question 4

To an economist,it is preferable to

Accepted Answer

A)  assume that all criminals are rational. 
B)  assume that all criminals are irrational. 
C)  build a theory based on a rational criminal and then check the evidence. 
D)  a or b

Question 5

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

Accepted Answer

The answer of Explain what it means to say that...

Question 6

George is a gift giver and Roger is a gift recipient.George has Roger in his utility function,but Roger does not have George in his utility function.Roger may try to get George to __________________ George's efficient number of gifts to (give).

Accepted Answer

A)  give more gifts to him than 
B)  reduce the number of gifts he receives below 
C)  increase the number of gifts he receives beyond 
D)  a and b 
E)  a and c

Question 7

Scientists are interested in finding out when their theories are wrong,as well as when they are right.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following can a homebuyer pay for indirectly when purchasing a home?

Accepted Answer

A)  good weather 
B)  a good school district 
C)  a nice view 
D)  all of the above

Question 9

For economic imperialists,economics is more of a method of analysis than a specific field of study.

Accepted Answer

A) True 
 B)False

Question 10

People sometimes act differently in different settings.An economist is likely to explain this by saying

Accepted Answer

A)  the benefits and costs of certain behaviors can be different in different settings. 
B)  people are hard to figure out. 
C)  people behave as others behave. 
D)  it is hard to figure out what makes people tick. 
E)  none of the above

Question 11

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)  none of the above

Question 12

It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV)to service all their customers at a given point in time.Based on one of theories discussed in the text,this is probably because

Accepted Answer

A)  the equilibrium "price" to be served by the DMV is lower than the "price" charged customers. 
B)  the equilibrium "price" to be served by the DMV is higher than the "price" charged customers. 
C)  the equilibrium "price" to be served by the DMV minus the "price" charged to customers is zero. 
D)  b and c 
E)  none of the above

Question 13

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 14

Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is

Accepted Answer

A)  becoming increasingly concerned with corporations rather than small businesses. 
B)  becoming increasingly focused on government actions rather than on business activity. 
C)  spreading out into other fields of study,such as history,anthropology,and sociology. 
D)  becoming increasingly focused on business activity rather than on government actions.

Question 15

Adrian reads about two theories,A and B.Theory A seems wrong to Adrian and theory B seems correct to Adrian.It follows that

Accepted Answer

A)  theory B is correct,and theory A is not. 
B)  both theories may be correct. 
C)  both theories may be incorrect. 
D)  theory A is trying to explain something completely different than theory B. 
E)  b and c

Question 16

Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens.Implicit in this position is the belief that

Accepted Answer

A)  if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory is a good explanation of how things work. 
B)  if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory will be accepted by others. 
C)  if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory's assumptions (even if they initially seem unrealistic)capture something that is essential to explaining what it is that the theory is trying to explain. 
D)  all of the above

Question 17

A theory predicts that all swans are white.A thousand people go out into the field and identify the color of the swans they see.Their results reveal that,of the 10,000 swans they saw,all were white.It follows that

Accepted Answer

A)  the swan theory is a falsifiable theory. 
B)  the swan theory is correct. 
C)  the evidence fails to reject the swan theory. 
D)  a and b 
E)  a and c

Question 18

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)  b and c 
E)  none of the above

Question 19

Scientists prefer to advance irrefutable theories,rather than refutable theories.

Accepted Answer

A) True 
 B)False

Question 20

The larger a percentage of the population a person is,the ______________ likely that person will have to further engage with people she meets.This implies that she will generally be ____________ likely to behave unethically and poorly with the people in her town as the population of her town increases.

Accepted Answer

A)  more;less 
B)  less;less 
C)  more;more 
D)  less;more

Exam 21: Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

House A has an ocean view and House B does not.In all other respects,the two houses are the same.The market price of house A is $2,300,000;the market price of house B is $1,600,000.The ocean view is valued at

"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 believes that

A gift-giver's efficient number of gifts (to give to a gift-recipient) has fallen from 10 to 8.This could be because

To an economist,it is preferable to

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

George is a gift giver and Roger is a gift recipient.George has Roger in his utility function,but Roger does not have George in his utility function.Roger may try to get George to __________________ George's efficient number of gifts to (give) .

Scientists are interested in finding out when their theories are wrong,as well as when they are right.

Which of the following can a homebuyer pay for indirectly when purchasing a home?

For economic imperialists,economics is more of a method of analysis than a specific field of study.

People sometimes act differently in different settings.An economist is likely to explain this by saying

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

It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV) to service all their customers at a given point in time.Based on one of theories discussed in the text,this is probably because

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

Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is

Adrian reads about two theories,A and B.Theory A seems wrong to Adrian and theory B seems correct to Adrian.It follows that

Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens.Implicit in this position is the belief that

A theory predicts that all swans are white.A thousand people go out into the field and identify the color of the swans they see.Their results reveal that,of the 10,000 swans they saw,all were white.It follows that

Which of the following is not a prediction of the theory on baseball caps and cheating?

Scientists prefer to advance irrefutable theories,rather than refutable theories.

The larger a percentage of the population a person is,the __ likely that person will have to further engage with people she meets.This implies that she will generally be likely to behave unethically and poorly with the people in her town as the population of her town increases.