Question 1

Econometrics is the statistical analysis of economic data.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain A

Question 2

The slope of a regression line is calculated by dividing

Accepted Answer

A)  the intercept by the change in horizontal distance. 
B)  the change in horizontal distance by the change in vertical distance. 
C)  the change in horizontal distance by the intercept term. 
D)  the change in vertical distance by the change in horizontal distance. 
E)  none of these answer options are correct. 
A)  the intercept by the change in horizontal distance. 
B)  the change in horizontal distance by the change in vertical distance. 
C)  the change in horizontal distance by the intercept term. 
D)  the change in vertical distance by the change in horizontal distance. 
E)  none of these answer options are correct. D

Question 3

Multiple regression analysis typically requires several computers.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain C

Question 4

It has been suggested in the text that raising taxes on beer will reduce teen fatalities.Comment on this.

Accepted Answer

As the text suggests,this is perfect use

Question 5

Positive economics

Accepted Answer

A)  does not depend on market interactions. 
B)  only looks at the best parts of the economy. 
C)  examines how the economy actually works (as opposed to how it should work). 
D)  is very subjective. 
A)  does not depend on market interactions. 
B)  only looks at the best parts of the economy. 
C)  examines how the economy actually works (as opposed to how it should work). 
D)  is very subjective.

Question 6

Empirical analysis generally deals with theory and little data.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 7

Instrumental variables requires that the variable not be correlated with the outcome variable.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 8

Why might the consequences of imposing a tax on harmful fast foods not adhere to theory?

Accepted Answer

Preferences of people with dif

Question 9

It is possible that two different economists can examine the same situation,such as school funding,and reach entirely different conclusions.Why is this so?

Accepted Answer

Reasoning resulting in differing results

Question 10

An experimental study is one which individuals are randomly assigned to the treatment and control groups.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 11

A model is a simplified description of some aspect of the economy.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 12

Unobserved influences on a regression are captured in the

Accepted Answer

A)  error term. 
B)  parameters. 
C)  regression line. 
D)  regression coefficient. 
A)  error term. 
B)  parameters. 
C)  regression line. 
D)  regression coefficient.

Question 13

Panel data requires

Accepted Answer

A)  data on individual entities. 
B)  time. 
C)  neither data on individual entities nor time. 
D)  both data on individual entities and time. 
A)  data on individual entities. 
B)  time. 
C)  neither data on individual entities nor time. 
D)  both data on individual entities and time.

Question 14

Economists attempt,with moderate success,to perform controlled experiments making policy analysis helpful.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 15

"Since the social sciences are not like the natural sciences,experiments are a waste of time." Comment on the above statement.

Accepted Answer

It is true that social sciences are not

Question 16

Discuss the concept in econometrics that states,"garbage in ...garbage out."

Accepted Answer

When the data used in an econometric ana

Question 17

The following can be analyzed using econometrics:

Accepted Answer

A)  labor supply. 
B)  market demand. 
C)  tax-setting behavior. 
D)  poverty. 
E)  all of these answer options are correct. 
A)  labor supply. 
B)  market demand. 
C)  tax-setting behavior. 
D)  poverty. 
E)  all of these answer options are correct.

Question 18

A counterfactual is

Accepted Answer

A)  what happens when there are no facts. 
B)  what would have happened if the treatment group had not received the treatment. 
C)  a legal term describing the process of proving that a negative is the actual truth. 
D)  none of these answer options are correct. 
A)  what happens when there are no facts. 
B)  what would have happened if the treatment group had not received the treatment. 
C)  a legal term describing the process of proving that a negative is the actual truth. 
D)  none of these answer options are correct.

Question 19

The substitution effect

Accepted Answer

A)  is when individuals consume more of one good and less of another. 
B)  is associated with changes in relative prices. 
C)  will have no effect if goods are unrelated. 
D)  all of these answer options are correct. 
A)  is when individuals consume more of one good and less of another. 
B)  is associated with changes in relative prices. 
C)  will have no effect if goods are unrelated. 
D)  all of these answer options are correct.

Question 20

Causation and Correlation are generally the same thing.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Exam 2: Tools of Positive Analysis

Econometrics is the statistical analysis of economic data.

The slope of a regression line is calculated by dividing

Multiple regression analysis typically requires several computers.

It has been suggested in the text that raising taxes on beer will reduce teen fatalities.Comment on this.

Positive economics

Empirical analysis generally deals with theory and little data.

Instrumental variables requires that the variable not be correlated with the outcome variable.

Why might the consequences of imposing a tax on harmful fast foods not adhere to theory?

It is possible that two different economists can examine the same situation,such as school funding,and reach entirely different conclusions.Why is this so?

An experimental study is one which individuals are randomly assigned to the treatment and control groups.

A model is a simplified description of some aspect of the economy.

Unobserved influences on a regression are captured in the

Panel data requires

Economists attempt,with moderate success,to perform controlled experiments making policy analysis helpful.

"Since the social sciences are not like the natural sciences,experiments are a waste of time." Comment on the above statement.

Discuss the concept in econometrics that states,"garbage in ...garbage out."

The following can be analyzed using econometrics:

A counterfactual is

The substitution effect

Causation and Correlation are generally the same thing.

Introduction

Tools of Normative Analysis

Public Goods

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

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