Question 1

Why are data essential components of the scientific method?

Accepted Answer

Data are important for testing a model.T

Question 2

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 followings statements is true of the model?

Accepted Answer

A)  The predictions of this model can be verified empirically. 
B)  The predictions of this model can only be applied for a limited number of years of additional education. 
C)  According to the model, 2 additional years of education will increase an individual's future wages 1.20 times. 
D)  According to the model, 2 additional years of education will increase an individual's future wages 2.98 times. 
A)  The predictions of this model can be verified empirically. 
B)  The predictions of this model can only be applied for a limited number of years of additional education. 
C)  According to the model, 2 additional years of education will increase an individual's future wages 1.20 times. 
D)  According to the model, 2 additional years of education will increase an individual's future wages 2.98 times.

Question 3

Which of the following relationships is most likely to exhibit zero correlation?

Accepted Answer

A)  The relationship between income and savings 
B)  The relationship between education and income 
C)  The relationship between wind velocity and the rotational speed of wind turbines 
D)  The relationship between the amount received as unemployment benefits in China and the unemployment rate in Canada 
A)  The relationship between income and savings 
B)  The relationship between education and income 
C)  The relationship between wind velocity and the rotational speed of wind turbines 
D)  The relationship between the amount received as unemployment benefits in China and the unemployment rate in Canada

Question 4

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 5

When two variables move in opposite directions,they are said to be ________.

Accepted Answer

A)  uncorrelated 
B)  positively correlated 
C)  negatively correlated 
D)  equivalent 
A)  uncorrelated 
B)  positively correlated 
C)  negatively correlated 
D)  equivalent

Question 6

On a line chart,the income of a consumer is measured along the horizontal axis,and his consumption is measured along the vertical axis.The slope of the line is equal to ________.

Accepted Answer

A)  change in consumption plus change in income 
B)  change in consumption minus change in income 
C)  change in consumption multiplied by change in income 
D)  change in consumption divided by change in income 
A)  change in consumption plus change in income 
B)  change in consumption minus change in income 
C)  change in consumption multiplied by change in income 
D)  change in consumption divided by change in income

Question 7

What are the three categories of correlation? Illustrate with real-life examples.

Accepted Answer

Correlation can be divided into three ca

Question 8

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 9

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 10

Causation occurs when ________.

Accepted Answer

A)  two variables tend to move in the same direction 
B)  two variables tend to move in opposite directions 
C)  a change in one variable is the reason for a change in another variable 
D)  a change in one variable does not cause any change in another variable 
A)  two variables tend to move in the same direction 
B)  two variables tend to move in opposite directions 
C)  a change in one variable is the reason for a change in another variable 
D)  a change in one variable does not cause any change in another variable

Question 11

An omitted variable is a variable that ________.

Accepted Answer

A)  is purposely left out as it does not aid an economic analysis 
B)  does not cause other variables in a study to change when it changes 
C)  is removed from a study as it can lead to the problem of reverse causality 
D)  has been left out, and if included, would explain why the variables considered in a study are correlated 
A)  is purposely left out as it does not aid an economic analysis 
B)  does not cause other variables in a study to change when it changes 
C)  is removed from a study as it can lead to the problem of reverse causality 
D)  has been left out, and if included, would explain why the variables considered in a study are correlated

Question 12

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 13

Which of the following statements is true about data?

Accepted Answer

A)  Empiricism does not necessarily involve data. 
B)  Consistency of models can be checked using data. 
C)  Facts that describe the world are not considered data. 
D)  Convincing data analysis in economics relies on using a small sample. 
A)  Empiricism does not necessarily involve data. 
B)  Consistency of models can be checked using data. 
C)  Facts that describe the world are not considered data. 
D)  Convincing data analysis in economics relies on using a small sample.

Question 14

An economic model suggests that an additional year of education increases a student's future wages by 15 percent.Using this model,answer the following questions.
a)Gary completes 8 years of education,and John completes 9 years of education.If Gary earns $20 per hour,how much is John expected to earn?
b)John completes 9 years of education,and Kevin completes 12 years of education.Given John's earnings (as calculated in part a),how much is Kevin expected to earn?
c)Is there any limitation to such a model? Explain your answer.

Accepted Answer

a)The economic model suggests that an ad

Question 15

Which of the following statements is true of the scientific method?

Accepted Answer

A)  The scientific method may not reveal a "true" model of the world. 
B)  The scientific method does not require the models to be tested with data. 
C)  The scientific method used by economists and scientists is independent of empiricism. 
D)  The scientific method can help develop accurate models even when data are unavailable. 
A)  The scientific method may not reveal a "true" model of the world. 
B)  The scientific method does not require the models to be tested with data. 
C)  The scientific method used by economists and scientists is independent of empiricism. 
D)  The scientific method can help develop accurate models even when data are unavailable.

Question 16

A model's predictions are referred to as ________.

Accepted Answer

A)  statistics 
B)  theories 
C)  hypotheses 
D)  empirical evidence 
A)  statistics 
B)  theories 
C)  hypotheses 
D)  empirical evidence

Question 17

Which of the following claims is most likely to suffer from reverse causality?

Accepted Answer

A)  Higher income increases consumption. 
B)  Relatively wealthy people tend to be relatively healthy. 
C)  More hours of study are likely to lead to better results. 
D)  Crime rate is seen to be lower in countries having a higher level of poverty. 
A)  Higher income increases consumption. 
B)  Relatively wealthy people tend to be relatively healthy. 
C)  More hours of study are likely to lead to better results. 
D)  Crime rate is seen to be lower in countries having a higher level of poverty.

Question 18

Which of the following arguments based on anecdotes is most likely to be incorrect?

Accepted Answer

A)  Increased government spending lowers the unemployment rate in an economy but can lead to inflation. 
B)  Based on a local survey of a small town, it was argued that greater opportunities to work from home are the prime cause of obesity among the elderly workforce in the country. 
C)  The average annual earnings of high school dropouts in the United States was much less than that of graduates in 2015. 
D)  A health survey of preschoolers in Mexico showed that the average height of preschoolers is between 3.5 feet and 4 feet. 
A)  Increased government spending lowers the unemployment rate in an economy but can lead to inflation. 
B)  Based on a local survey of a small town, it was argued that greater opportunities to work from home are the prime cause of obesity among the elderly workforce in the country. 
C)  The average annual earnings of high school dropouts in the United States was much less than that of graduates in 2015. 
D)  A health survey of preschoolers in Mexico showed that the average height of preschoolers is between 3.5 feet and 4 feet.

Question 19

Why do almost all models begin with assumptions?

Accepted Answer

Researchers develop a model,which is a s

Question 20

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

Why are data essential components 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 followings statements is true of the model?

Which of the following relationships is most likely to exhibit zero correlation?

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

When two variables move in opposite directions,they are said to be ________.

On a line chart,the income of a consumer is measured along the horizontal axis,and his consumption is measured along the vertical axis.The slope of the line is equal to ________.

What are the three categories of correlation? Illustrate with real-life examples.

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 a feature of the scientific method?

Causation occurs when ________.

An omitted variable is a variable that ________.

The mean of a data set is the ________.

Which of the following statements is true about data?

Which of the following statements is true of the scientific method?

A model's predictions are referred to as ________.

Which of the following claims is most likely to suffer from reverse causality?

Which of the following arguments based on anecdotes is most likely to be incorrect?

Why do almost all models begin with assumptions?

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

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters

Exam 2: Economic Methods and Economic Questions

Why are data essential components 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 followings statements is true of the model?

Which of the following relationships is most likely to exhibit zero correlation?

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

When two variables move in opposite directions,they are said to be ________.

On a line chart,the income of a consumer is measured along the horizontal axis,and his consumption is measured along the vertical axis.The slope of the line is equal to ________.

What are the three categories of correlation? Illustrate with real-life examples.

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 a feature of the scientific method?

Causation occurs when ________.

An omitted variable is a variable that ________.

The mean of a data set is the ________.

Which of the following statements is true about data?

Which of the following statements is true of the scientific method?

A model's predictions are referred to as ________.

Which of the following claims is most likely to suffer from reverse causality?

Which of the following arguments based on anecdotes is most likely to be incorrect?

Why do almost all models begin with assumptions?

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

The Principles and Practice of Economics

Optimization: Doing the Best You Can

Demand, supply, and Equilibrium

Consumers and Incentives

Sellers and Incentives

Perfect Competition and the Invisible Hand

Trade

Externalities and Public Goods

The Government in the Economy: Taxation and Regulation

Markets for Factors of Production

Monopoly

Game Theory and Strategic Play

Oligopoly and Monopolistic Competition

Trade-Offs Involving Time and Risk

The Economics of Information

Auctions and Bargaining

Social Economics

Filters