Question 1

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

Question 2

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.

Question 3

________ 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

Question 4

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.

Question 5

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

Question 6

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 7

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

Question 8

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 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.

Question 10

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 B

Question 11

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.

Question 12

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

Accepted Answer

Reverse causality is said to happen when...

Question 13

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.

Question 14

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

Question 15

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

Question 16

Empiricism refers to using ________ to analyze the world.

Accepted Answer

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

Question 17

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.

Question 18

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 D

Question 19

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.

Question 20

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

Exam 2: Economic Methods and Economic Questions

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

Correct Answer
verified

Which of the following is a key property of models?

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

A model refers to ________.

Correct Answer
verified

What are the problems with experimentation?

Empirical evidence refers to ________.

Correct Answer
verified

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?

Correct Answer
verified
The model suggests that if Richard earns...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified
B

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

Correct Answer
verified

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

Correct Answer
verified
Reverse causality is said to happen when...
View Answer

Which of the following statements is true?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Empiricism refers to using ________ to analyze the world.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

An experiment refers to ________.

Correct Answer
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D

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

Correct Answer
verified

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?

Correct Answer
verified

Exam 2: Economic Methods and Economic Questions

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

Correct AnswerverifiedShow Answer

Which of the following is a key property of models?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow 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?

Correct AnswerverifiedShow Answer

A model refers to ________.

Correct AnswerverifiedShow Answer

What are the problems with experimentation?

Correct AnswerverifiedThere 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.

Empirical evidence refers to ________.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedThe model suggests that if Richard earns...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedReverse causality is said to happen when...View AnswerShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Empiricism refers to using ________ to analyze the world.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

An experiment refers to ________.

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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The model suggests that if Richard earns...
View Answer

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B

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Reverse causality is said to happen when...
View Answer

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D

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