Question 1

We state that the evidence __________________ if evidence is consistent with a theory's predictions.

Accepted Answer

A) fails to reject the theory 
B) proves the theory is correct 
C) proves the theory is invalid 
D) none of the above 
A) fails to reject the theory 
B) proves the theory is correct 
C) proves the theory is invalid 
D) none of the above

Question 2

Which of the following can a homebuyer pay for indirectly when purchasing a home?

Accepted Answer

A) good weather 
B) a good school district 
C) a nice view 
D) all of the above 
A) good weather 
B) a good school district 
C) a nice view 
D) all of the above

Question 3

Which of the following is not a prediction of the theory on baseball caps and cheating?

Accepted Answer

A) More people will wear baseball caps on test days than on lecture days. 
B) More people will wear baseball caps for multiple choice tests than for essay tests. 
C) More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test. 
D) b and c 
E) none of the above 
A) More people will wear baseball caps on test days than on lecture days. 
B) More people will wear baseball caps for multiple choice tests than for essay tests. 
C) More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test. 
D) b and c 
E) none of the above

Question 4

In the burglary crime model presented in the textbook,as the anguish cost of committing a burglary rises,the prediction is that

Accepted Answer

A) more people will commit burglary. 
B) the same number of people will commit burglary. 
C) fewer people will commit burglary. 
D) There is not enough information to answer this question. 
A) more people will commit burglary. 
B) the same number of people will commit burglary. 
C) fewer people will commit burglary. 
D) There is not enough information to answer this question.

Question 5

George is a gift giver and Roger is a gift recipient.George has Roger in his utility function,but Roger does not have George in his utility function.Roger may try to get George to __________________ George's efficient number of gifts to (give).

Accepted Answer

A) give more gifts to him than 
B) reduce the number of gifts he receives below 
C) increase the number of gifts he receives beyond 
D) a and b 
E) a and c 
A) give more gifts to him than 
B) reduce the number of gifts he receives below 
C) increase the number of gifts he receives beyond 
D) a and b 
E) a and c

Question 6

Which of the following statements is false?

Accepted Answer

A) A theory should be judged based upon whether or not it tells us the things we want to hear. 
B) Scientists are interested in finding out when their theories are wrong or right. 
C) Scientists are interested in building theories that can be refuted. 
D) If evidence is consistent with a theory's predictions,we state that the evidence fails to reject the theory. 
A) A theory should be judged based upon whether or not it tells us the things we want to hear. 
B) Scientists are interested in finding out when their theories are wrong or right. 
C) Scientists are interested in building theories that can be refuted. 
D) If evidence is consistent with a theory's predictions,we state that the evidence fails to reject the theory.

Question 7

Which of the following statements is true?

Accepted Answer

A) The motivation to try to explain something is at the heart of building a theory. 
B) If a theory makes people uncomfortable then it should be discarded or ignored. 
C) In order for a theory to be valid it must be a perfect description of reality. 
D) Building a theory and evaluating a theory are the same thing. 
A) The motivation to try to explain something is at the heart of building a theory. 
B) If a theory makes people uncomfortable then it should be discarded or ignored. 
C) In order for a theory to be valid it must be a perfect description of reality. 
D) Building a theory and evaluating a theory are the same thing.

Question 8

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

Accepted Answer

To say that a theory is falsifiable or r

Question 9

If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong,it is said to have the virtue of falsifiability.

Accepted Answer

A) True 
 B)False

Question 10

"The theory's predictions are consistent with what I believe,so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that

Accepted Answer

A) theories should be tested by gathering and analyzing data. 
B) theories are descriptive of reality. 
C) theories should be falsifiable or refutable. 
D) b and c 
E) none of the above 
A) theories should be tested by gathering and analyzing data. 
B) theories are descriptive of reality. 
C) theories should be falsifiable or refutable. 
D) b and c 
E) none of the above

Question 11

Scientists prefer to advance irrefutable theories,rather than refutable theories.

Accepted Answer

A) True 
 B)False

Question 12

Identify and describe each step of the five-step process outlined in the textbook for building and testing theories.

Accepted Answer

The first step in building and testing t

Question 13

There is no difference between building a theory and evaluating a theory.

Accepted Answer

A) True 
 B)False

Question 14

If a person gives a gift to another person,an economist would say that it is because

Accepted Answer

A) the marginal benefit of giving the gift is at least as great as the marginal cost of giving the gift. 
B) the marginal cost of giving the gift is at least as great as the marginal benefit of giving the gift. 
C) he expects to receive a gift in return. 
D) none of the above 
A) the marginal benefit of giving the gift is at least as great as the marginal cost of giving the gift. 
B) the marginal cost of giving the gift is at least as great as the marginal benefit of giving the gift. 
C) he expects to receive a gift in return. 
D) none of the above

Question 15

For every gift that A gives to B from the first to the tenth gift,A receives a net benefit of $10.The additional cost to A of giving an additional gift is constant at $5.It follows that A's marginal benefit curve for giving gifts to B is ___________________ (assuming that we place "marginal benefits" on the vertical axis and "number of gifts" on the horizontal axis).

Accepted Answer

A) downward-sloping over units 1 -10. 
B) upward-sloping over units 1-10. 
C) horizontal over units 1-10. 
D) vertical over units 1-10. 
E) There is not enough information provided to answer the question. 
A) downward-sloping over units 1 -10. 
B) upward-sloping over units 1-10. 
C) horizontal over units 1-10. 
D) vertical over units 1-10. 
E) There is not enough information provided to answer the question.

Question 16

Suppose you go to a high school and identify groups of students sitting at different lunch tables.To you it appears that everyone on the football team sits at one table,everyone who gets really high grades sits at another table,everyone who is in the drama club sits at another table,and so on.This outcome could be

Accepted Answer

A) the result of everyone preferring to sit at a table with dissimilar students,but not want to be at a table if he or she is in a 30 percent minority or less. 
B) because people naturally discriminate against (and make feel unwelcome)those people who are not like them. 
C) because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch)according to certain key interests. 
D) b and c 
E) all of the above 
A) the result of everyone preferring to sit at a table with dissimilar students,but not want to be at a table if he or she is in a 30 percent minority or less. 
B) because people naturally discriminate against (and make feel unwelcome)those people who are not like them. 
C) because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch)according to certain key interests. 
D) b and c 
E) all of the above

Question 17

Which of the following is inconsistent with the burglary crime model presented in the textbook?

Accepted Answer

A) The burglary rate rises during recessions. 
B) The burglary rate declines during recessions. 
C) The burglary rate remains does not change because of a recession. 
D) The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary. 
E) a and d 
A) The burglary rate rises during recessions. 
B) The burglary rate declines during recessions. 
C) The burglary rate remains does not change because of a recession. 
D) The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary. 
E) a and d

Question 18

Smith sends her children to a private school on the other side of town.Tuition per student per year is $15,000.Jones sends her children to a public school on her side of town.Tuition per student per year is $0.Most people seem to think that the private school and public school are equivalent when it comes to educating students.According to a theory discussed in the textbook,

Accepted Answer

A) Smith lives in a more expensive home than Jones. 
B) Jones lives in a more expensive home than Smith. 
C) Smith and Jones live in homes that are priced the same. 
D) Smith lives in a larger home than Jones. 
E) none of the above 
A) Smith lives in a more expensive home than Jones. 
B) Jones lives in a more expensive home than Smith. 
C) Smith and Jones live in homes that are priced the same. 
D) Smith lives in a larger home than Jones. 
E) none of the above

Question 19

A person who lives in a good-climate city says,"It's expensive to live here,but at least the climate is free." In terms of a theory advanced in the textbook,this person has either forgotten or is unaware that

Accepted Answer

A) New York City is not a good-climate city and it is expensive to live there.In other words,not all good-climate cities are expensive and not all bad-climate cities are cheap. 
B) part of the reason it's expensive to live in the city is because of the good climate. 
C) good-climate cities have more outdoor entertainment entities and activities and therefore people have to pay higher taxes to support those entities and activities. 
D) there is a sunshine tax in most of the country - the more hours of sunshine a day,the higher the tax. 
E) none of the above 
A) New York City is not a good-climate city and it is expensive to live there.In other words,not all good-climate cities are expensive and not all bad-climate cities are cheap. 
B) part of the reason it's expensive to live in the city is because of the good climate. 
C) good-climate cities have more outdoor entertainment entities and activities and therefore people have to pay higher taxes to support those entities and activities. 
D) there is a sunshine tax in most of the country - the more hours of sunshine a day,the higher the tax. 
E) none of the above

Question 20

Kristie currently spends her $1,000 a week income as follows: $500 on X,$300 on Y,and $200 on Z.Her mother then gives her a $100 bill and tells her to use it to buy more Z.Kristie actually takes the $100 her mother gave to her,adds $40 to the $200 she usually spends on Z,and buys $240 worth of Z.Did Kristie's mother's $100 go to buy only Z?

Accepted Answer

A) Yes,because Kristie used her mother's actual $100 bill to buy Z. 
B) No,because if it had,Kristie would have bought $300 worth of Z.Some of Kristie's mother's money went for what Kristie had next on her list of desired purchases. 
C) Yes,since Kristie bought $240 worth of Z,and the amount of money her mother gave her is less than $240. 
D) There is not enough information to answer the question. 
A) Yes,because Kristie used her mother's actual $100 bill to buy Z. 
B) No,because if it had,Kristie would have bought $300 worth of Z.Some of Kristie's mother's money went for what Kristie had next on her list of desired purchases. 
C) Yes,since Kristie bought $240 worth of Z,and the amount of money her mother gave her is less than $240. 
D) There is not enough information to answer the question.

Exam 20: Public Choice and Special-Interest-Group Politics

We state that the evidence __________________ if evidence is consistent with a theory's predictions.

Which of the following can a homebuyer pay for indirectly when purchasing a home?

Which of the following is not a prediction of the theory on baseball caps and cheating?

In the burglary crime model presented in the textbook,as the anguish cost of committing a burglary rises,the prediction is that

George is a gift giver and Roger is a gift recipient.George has Roger in his utility function,but Roger does not have George in his utility function.Roger may try to get George to __________________ George's efficient number of gifts to (give).

Which of the following statements is false?

Which of the following statements is true?

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong,it is said to have the virtue of falsifiability.

"The theory's predictions are consistent with what I believe,so now I have good reason to believe what the theory says." This statement is likely to have been made by a person who believes that

Scientists prefer to advance irrefutable theories,rather than refutable theories.

Identify and describe each step of the five-step process outlined in the textbook for building and testing theories.

There is no difference between building a theory and evaluating a theory.

If a person gives a gift to another person,an economist would say that it is because

Which of the following is inconsistent with the burglary crime model presented in the textbook?

A person who lives in a good-climate city says,"It's expensive to live here,but at least the climate is free." In terms of a theory advanced in the textbook,this person has either forgotten or is unaware that

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

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International Finance

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

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