Question 1

Which of the following statements is true?

Accepted Answer

A)  Empirical arguments can be supported without the use of data. 
B)  Using a large data set will strengthen the force of an empirical argument. 
C)  Using fewer observations will strengthen the force of an empirical argument. 
D)  The number of observations used does not affect the strength of an empirical argument. 
A)  Empirical arguments can be supported without the use of data. 
B)  Using a large data set will strengthen the force of an empirical argument. 
C)  Using fewer observations will strengthen the force of an empirical argument. 
D)  The number of observations used does not affect the strength of an empirical argument.

Question 2

As the number of billboards for a firm's product increases from 100 to 500,its sales increase from $1,000 to $10,000.If this information is plotted on a line chart,the slope of the line equals ________.

Accepted Answer

A)  $20 
B)  $0.044 
C)  $22.5 
D)  $30.33 
A)  $20 
B)  $0.044 
C)  $22.5 
D)  $30.33

Question 3

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 4

Facts,measurements,or statistics that describe the world are referred to as ________.

Accepted Answer

A)  data 
B)  models 
C)  hypothesis 
D)  empiricism 
A)  data 
B)  models 
C)  hypothesis 
D)  empiricism

Question 5

In research,what is the importance of experiments? What is meant by randomization in experiments?

Accepted Answer

An experiment is a controlled method of

Question 6

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 7

In country X,the average yearly salary of 50-year-olds with 16 years of education is $50,275,while the average yearly salary of 50-year-olds with 12 years of education is $36,265.According to these data,4 additional years of education are likely to be correlated with higher future wages of about ________.

Accepted Answer

A)  24 percent 
B)  38 percent 
C)  50 percent 
D)  88 percent 
A)  24 percent 
B)  38 percent 
C)  50 percent 
D)  88 percent

Question 8

Randomization is the assignment of subjects by ________ to a ________.

Accepted Answer

A)  chance, rather than by choice; treatment group or to a test group 
B)  choice, rather than by chance; treatment group or to a test group 
C)  choice, rather than by chance; treatment group or to a control group 
D)  chance, rather than by choice; treatment group or to a control group 
A)  chance, rather than by choice; treatment group or to a test group 
B)  choice, rather than by chance; treatment group or to a test group 
C)  choice, rather than by chance; treatment group or to a control group 
D)  chance, rather than by choice; treatment group or to a control group

Question 9

Which of the following statements is true?

Accepted Answer

A)  Arguments based on anecdotes are always true. 
B)  In the scientific method, anecdotes are more important than data. 
C)  Arguments by example are appropriate when contradicting a blanket statement. 
D)  It is easier for a researcher to jump to a wrong conclusion when she uses a large data set. 
A)  Arguments based on anecdotes are always true. 
B)  In the scientific method, anecdotes are more important than data. 
C)  Arguments by example are appropriate when contradicting a blanket statement. 
D)  It is easier for a researcher to jump to a wrong conclusion when she uses a large data set.

Question 10

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 11

Which of the following statements is true of models?

Accepted Answer

A)  The predictions of a model are referred to as data. 
B)  A model is formulated after developing a hypothesis. 
C)  Models are always based on assumptions that are known to be true. 
D)  It is more important for a model to be simple and useful than to be precisely accurate. 
A)  The predictions of a model are referred to as data. 
B)  A model is formulated after developing a hypothesis. 
C)  Models are always based on assumptions that are known to be true. 
D)  It is more important for a model to be simple and useful than to be precisely accurate.

Question 12

When two variables move in the same direction,they are said to be ________.

Accepted Answer

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

Question 13

A model ________.

Accepted Answer

A)  is often based on simplifying assumptions that are not necessarily true 
B)  can be tested without data or statistics 
C)  is a more complex representation of reality than a theory 
D)  can never be used to predict the future, but it helps explain the past 
A)  is often based on simplifying assumptions that are not necessarily true 
B)  can be tested without data or statistics 
C)  is a more complex representation of reality than a theory 
D)  can never be used to predict the future, but it helps explain the past

Question 14

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 15

An independent variable ________.

Accepted Answer

A)  cannot be measured 
B)  cannot be represented on a bar chart 
C)  is manipulated by the experimenter in an experiment 
D)  is determined by the other variables in an experiment 
A)  cannot be measured 
B)  cannot be represented on a bar chart 
C)  is manipulated by the experimenter in an experiment 
D)  is determined by the other variables in an experiment

Question 16

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 17

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 18

A survey recently indicated that being happy at work tends to make workers more productive.What can be a possible error of this conclusion?

Accepted Answer

The conclusion derived from the survey i

Question 19

Which of the following is a feature of experiments?

Accepted Answer

A)  Experiments are restricted to laboratories. 
B)  Experiments are carried out only in the study of economics. 
C)  Experiments help determine cause and effect between variables. 
D)  Experiments require the division of participants into a treatment group and a test group. 
A)  Experiments are restricted to laboratories. 
B)  Experiments are carried out only in the study of economics. 
C)  Experiments help determine cause and effect between variables. 
D)  Experiments require the division of participants into a treatment group and a test group.

Question 20

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

Which of the following statements is true?

As the number of billboards for a firm's product increases from 100 to 500,its sales increase from $1,000 to $10,000.If this information is plotted on a line chart,the slope of the line equals ________.

A natural experiment is an empirical study ________.

Facts,measurements,or statistics that describe the world are referred to as ________.

In research,what is the importance of experiments? What is meant by randomization in experiments?

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.

Randomization is the assignment of subjects by to a .

Which of the following statements is true?

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

Which of the following statements is true of models?

When two variables move in the same direction,they are said to be ________.

A model ________.

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 ________.

An independent variable ________.

Public-use data refer to ________.

Economic models are often based on assumptions because they ________.

A survey recently indicated that being happy at work tends to make workers more productive.What can be a possible error of this conclusion?

Which of the following is a feature of 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 ________.

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

Which of the following statements is true?

As the number of billboards for a firm's product increases from 100 to 500,its sales increase from $1,000 to $10,000.If this information is plotted on a line chart,the slope of the line equals ________.

A natural experiment is an empirical study ________.

Facts,measurements,or statistics that describe the world are referred to as ________.

In research,what is the importance of experiments? What is meant by randomization in experiments?

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.

Randomization is the assignment of subjects by ________ to a ________.

Which of the following statements is true?

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

Which of the following statements is true of models?

When two variables move in the same direction,they are said to be ________.

A model ________.

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 ________.

An independent variable ________.

Public-use data refer to ________.

Economic models are often based on assumptions because they ________.

A survey recently indicated that being happy at work tends to make workers more productive.What can be a possible error of this conclusion?

Which of the following is a feature of 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 ________.

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

Randomization is the assignment of subjects by to a .