Question 1

Public-use data refer to ________.

Accepted Answer

A)  data that have to be purchased from an external agent 
B)  data that are available to anyone who wants to use it 
C)  data published by the government only during political campaigns 
D)  data collected by a researcher only through field investigation 
A)  data that have to be purchased from an external agent 
B)  data that are available to anyone who wants to use it 
C)  data published by the government only during political campaigns 
D)  data collected by a researcher only through field investigation

Question 2

Which of the following is a feature of the scientific method?

Accepted Answer

A)  The scientific method is not based on data, statistics, or measurements. 
B)  The scientific method allows improvisation and correction of inconsistent models. 
C)  The scientific method enables the creation of perfectly accurate models of the real world. 
D)  The scientific method is used only for studying topics related to economics. 
A)  The scientific method is not based on data, statistics, or measurements. 
B)  The scientific method allows improvisation and correction of inconsistent models. 
C)  The scientific method enables the creation of perfectly accurate models of the real world. 
D)  The scientific method is used only for studying topics related to economics.

Question 3

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's prediction?

Accepted Answer

A)  The prediction cannot be verified empirically. 
B)  The prediction is precise, exact, and accurate for the entire population. 
C)  The prediction is an approximate relationship and may not hold for everyone. 
D)  The prediction can be applied to estimate the returns only for a limited number of years of additional education. 
A)  The prediction cannot be verified empirically. 
B)  The prediction is precise, exact, and accurate for the entire population. 
C)  The prediction is an approximate relationship and may not hold for everyone. 
D)  The prediction can be applied to estimate the returns only for a limited number of years of additional education.

Question 4

State the type of correlation between the following sets of variables.
a)Consumption and income
b)Education and unemployment
c)Availability of health care and death rate
d)Pollution control measures adopted in Canada and the number of cases of respiratory diseases in Australia

Accepted Answer

a)Consumption and income are likely to b

Question 5

Why do almost all models begin with assumptions?

Accepted Answer

Researchers develop a model,which is a s

Question 6

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 7

When the objective of an experiment or a study is to understand the changes in the attributes of a variable on a month-to-month basis,a ________ is most useful.

Accepted Answer

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

Question 8

Suppose a pharmaceutical company wants to test the effectiveness of a new drug in curing cancer.Which approach should it use to test whether the new drug is more effective than existing medicines that are widely used?

Accepted Answer

The best way to test the effectiveness o

Question 9

What are the two important properties of all models?

Accepted Answer

i)All models are approximations.A model

Question 10

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

Question 11

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 12

Which of the following pairs of variables is likely to be positively correlated?

Accepted Answer

A)  Income and consumption 
B)  Price and consumption 
C)  Education and unemployment 
D)  Availability of health care and death rate 
A)  Income and consumption 
B)  Price and consumption 
C)  Education and unemployment 
D)  Availability of health care and death rate

Question 13

Which of the following relationships is likely to exhibit a negative correlation?

Accepted Answer

A)  The relationship between the amount saved with a bank and the interest earned 
B)  The relationship between the level of professional training and unemployment 
C)  The relationship between inflation in the United States and traffic congestion in China 
D)  The relationship between the amount of precipitation in a year and the number of umbrellas sold 
A)  The relationship between the amount saved with a bank and the interest earned 
B)  The relationship between the level of professional training and unemployment 
C)  The relationship between inflation in the United States and traffic congestion in China 
D)  The relationship between the amount of precipitation in a year and the number of umbrellas sold

Question 14

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

Accepted Answer

Reverse causality is said to happen when

Public-use data refer to ________.

Which of the following is a feature of the scientific method?

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's prediction?

State the type of correlation between the following sets of variables. a)Consumption and income b)Education and unemployment c)Availability of health care and death rate d)Pollution control measures adopted in Canada and the number of cases of respiratory diseases in Australia

Why do almost all models begin with assumptions?

Which of the following is a key property of models?

When the objective of an experiment or a study is to understand the changes in the attributes of a variable on a month-to-month basis,a ________ is most useful.

Suppose a pharmaceutical company wants to test the effectiveness of a new drug in curing cancer.Which approach should it use to test whether the new drug is more effective than existing medicines that are widely used?

What are the two important properties of all models?

An experiment refers to ________.

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

Which of the following pairs of variables is likely to be positively correlated?

Which of the following relationships is likely to exhibit a negative correlation?

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

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

Public-use data refer to ________.

Which of the following is a feature of the scientific method?

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's prediction?

State the type of correlation between the following sets of variables. a)Consumption and income b)Education and unemployment c)Availability of health care and death rate d)Pollution control measures adopted in Canada and the number of cases of respiratory diseases in Australia

Why do almost all models begin with assumptions?

Which of the following is a key property of models?

When the objective of an experiment or a study is to understand the changes in the attributes of a variable on a month-to-month basis,a ________ is most useful.

Suppose a pharmaceutical company wants to test the effectiveness of a new drug in curing cancer.Which approach should it use to test whether the new drug is more effective than existing medicines that are widely used?

What are the two important properties of all models?

An experiment refers to ________.

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

Which of the following pairs of variables is likely to be positively correlated?

Which of the following relationships is likely to exhibit a negative correlation?

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

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