Question 1

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 2

What are the problems with experimentation?

Accepted Answer

There are three main problems associated

Question 3

Why are data essential components of the scientific method?

Accepted Answer

Data are important for testing a model.T

Question 4

Economic models are often based on assumptions because they ________.

Accepted Answer

A)  help explain the past 
B)  help simplify complex real-world phenomena 
C)  help predict the future with greater accuracy 
D)  help test models even when relevant data are unavailable 
A)  help explain the past 
B)  help simplify complex real-world phenomena 
C)  help predict the future with greater accuracy 
D)  help test models even when relevant data are unavailable

Question 5

Which of the following is NOT a problem associated with randomized experiments?

Accepted Answer

A)  Experiments can sometimes get expensive for the researcher. 
B)  The participants in the treatment group and the control group are not identical in all respects. 
C)  Getting immediate answers to some important questions may not be possible. 
D)  Sometimes experiments are conducted poorly, which may lead to inaccurate results. 
A)  Experiments can sometimes get expensive for the researcher. 
B)  The participants in the treatment group and the control group are not identical in all respects. 
C)  Getting immediate answers to some important questions may not be possible. 
D)  Sometimes experiments are conducted poorly, which may lead to inaccurate results.

Question 6

The following table shows the monthly wages of five different individuals.
  
-Refer to the table above.The average monthly wage of the five workers is ________.

Accepted Answer

A)  $600 
B)  $450 
C)  $440 
D)  $0 
A)  $600 
B)  $450 
C)  $440 
D)  $0

Question 7

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 8

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 9

A natural experiment is an empirical study ________.

Accepted Answer

A)  in which the predictions of the model are not required to be tested with data 
B)  that can only be used to understand natural phenomena and is widely used in subjects such as physics and biology 
C)  in which the researcher assigns subjects to the control and treatment groups to verify a cause-effect relationship 
D)  in which some process, outside the control of the experimenter, has assigned subjects to the control and treatment groups in a random or nearly random way 
A)  in which the predictions of the model are not required to be tested with data 
B)  that can only be used to understand natural phenomena and is widely used in subjects such as physics and biology 
C)  in which the researcher assigns subjects to the control and treatment groups to verify a cause-effect relationship 
D)  in which some process, outside the control of the experimenter, has assigned subjects to the control and treatment groups in a random or nearly random way

Question 10

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 11

The mean of a data set is the ________.

Accepted Answer

A)  product of all values divided by the number of values 
B)  sum of all different values divided by the number of values 
C)  sum of all different values multiplied by the number of values 
D)  difference between the highest value and the lowest value 
A)  product of all values divided by the number of values 
B)  sum of all different values divided by the number of values 
C)  sum of all different values multiplied by the number of values 
D)  difference between the highest value and the lowest value

Question 12

In a hypothetical country,the average wage of five 40-year-old citizens with a college education is $36,896,and the average wage of five 40-year-old citizens with a high school education is $25,864.What is the returns-to-college education in the country? Is there any limitation of this analysis? Explain your answer.

Accepted Answer

Dividing the average salary of 40-year-o

Question 13

It has been observed in country X that with an increase in college enrollment over a period of 6 years,the demand for televisions has also increased.Would it be right to conclude that the increase in college enrollment has caused the increase in demand for televisions? Why or why not?

Accepted Answer

The error in drawing such a conclusion i

Question 14

Which of the following is most likely to be an example of causation?

Accepted Answer

A)  The crime rate is high in a country. The literacy rate is high as well. 
B)  A firm producing compact fluorescent light bulbs installs new machinery. Their per-day production of light bulbs increases. 
C)  A soccer player scores four goals when he wears red socks. He concludes that the red socks helped him score the goals. 
D)  A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. 
A)  The crime rate is high in a country. The literacy rate is high as well. 
B)  A firm producing compact fluorescent light bulbs installs new machinery. Their per-day production of light bulbs increases. 
C)  A soccer player scores four goals when he wears red socks. He concludes that the red socks helped him score the goals. 
D)  A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future.

Question 15

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

Accepted Answer

A)  $40,000 
B)  $43,850 
C)  $56,225 
D)  $63,950 
A)  $40,000 
B)  $43,850 
C)  $56,225 
D)  $63,950

Question 16

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

Accepted Answer

A)  $500 
B)  $400 
C)  $250 
D)  $700 
A)  $500 
B)  $400 
C)  $250 
D)  $700

Question 17

A variable is a factor that ________.

Accepted Answer

A)  cannot be measured 
B)  is not affected by changes in other factors 
C)  is independent and cannot be determined 
D)  takes different values at different points of time 
A)  cannot be measured 
B)  is not affected by changes in other factors 
C)  is independent and cannot be determined 
D)  takes different values at different points of time

Question 18

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.The hypothesis of the model is that ________.

Accepted Answer

A)  college graduates will earn about 80 percent more than high school graduates 
B)  college graduates will earn about 107 percent more than high school graduates 
C)  college graduates will earn about 200 percent more than high school graduates 
D)  college graduates will earn about 275 percent more than high school graduates 
A)  college graduates will earn about 80 percent more than high school graduates 
B)  college graduates will earn about 107 percent more than high school graduates 
C)  college graduates will earn about 200 percent more than high school graduates 
D)  college graduates will earn about 275 percent more than high school graduates

Question 19

Which of the following statements is true?

Accepted Answer

A)  Correlation can only arise when causation is not present. 
B)  Causation can only arise when correlation is not present. 
C)  Correlation arises when there is causation and can also arise when there is no causation. 
D)  Causation arises when there is correlation between two variables and can also arise when there is no correlation. 
A)  Correlation can only arise when causation is not present. 
B)  Causation can only arise when correlation is not present. 
C)  Correlation arises when there is causation and can also arise when there is no causation. 
D)  Causation arises when there is correlation between two variables and can also arise when there is no correlation.

Question 20

The following table displays the marks obtained by three students on an economics test.
   
a)Calculate the mean marks obtained by the three students.
b)Suppose one of the scores was reported incorrectly.Charles scored 38 instead of 83.How will the mean change if the correction is incorporated?
c)How does the amount of data used affect the accuracy of a model?

Accepted Answer

a)The mean,or average,is the sum of the

A model refers to ________.

What are the problems with experimentation?

Why are data essential components of the scientific method?

Economic models are often based on assumptions because they ________.

Which of the following is NOT a problem associated with randomized experiments?

The following table shows the monthly wages of five different individuals. -Refer to the table above.The average monthly wage of the five workers is ________.

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?

Which of the following statements is true?

A natural experiment is an empirical study ________.

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

The mean of a data set is the ________.

It has been observed in country X that with an increase in college enrollment over a period of 6 years,the demand for televisions has also increased.Would it be right to conclude that the increase in college enrollment has caused the increase in demand for televisions? Why or why not?

Which of the following is most likely to be an example of causation?

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

A variable is a factor that ________.

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.The hypothesis of the model is that ________.

Which of the following statements is true?

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

A model refers to ________.

What are the problems with experimentation?

Why are data essential components of the scientific method?

Economic models are often based on assumptions because they ________.

Which of the following is NOT a problem associated with randomized experiments?

The following table shows the monthly wages of five different individuals. -Refer to the table above.The average monthly wage of the five workers is ________.

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?

Which of the following statements is true?

A natural experiment is an empirical study ________.

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

The mean of a data set is the ________.

It has been observed in country X that with an increase in college enrollment over a period of 6 years,the demand for televisions has also increased.Would it be right to conclude that the increase in college enrollment has caused the increase in demand for televisions? Why or why not?

Which of the following is most likely to be an example of causation?

The average income of 25 employees working in a firm is $1,754 per month.What is the total income of all the employees?

Annie,Darwin,Dorothy,Christian,and Isabella are five college students who work as part-time bartenders.If their average weekly earnings is $100,then their total weekly earnings is ________.

A variable is a factor that ________.

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.The hypothesis of the model is that ________.

Which of the following statements is true?

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