Question 1

In a research project, when the sample used is not random, selection bias occurs.

Accepted Answer

A) True 
 B)False

Question 2

Identifying the causal effects of a policy by looking at two samples that lie on either side of a threshold is called

Accepted Answer

A)  difference-in-differences. 
B)  statistical significance. 
C)  regression discontinuity. 
D)  intention to treat. 
A)  difference-in-differences. 
B)  statistical significance. 
C)  regression discontinuity. 
D)  intention to treat.

Question 3

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
   The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The error for point E is equal to

Accepted Answer

A)  -2. 
B)  -1. 
C)  +2. 
D)  +4. 
A)  -2. 
B)  -1. 
C)  +2. 
D)  +4.

Question 4

A strategy that identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff is called intention to treat.

Accepted Answer

A) True 
 B)False

Question 5

If two variables move in opposite directions, they are said to be negatively correlated.

Accepted Answer

A) True 
 B)False

Question 6

Refer to the information provided in Table 21.3 below to answer the questions that follow.
Table 21.3
   The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y.
-Refer to Table 21.3. Which of the following points is (are) the best fit for the given consumption function?

Accepted Answer

A)  A 
B)  A, B, C and D 
C)  D and F 
D)  E 
A)  A 
B)  A, B, C and D 
C)  D and F 
D)  E

Question 7

A p-value refers to the probability of obtaining the result that you find in the sample data if the null hypothesis is not true.

Accepted Answer

A) True 
 B)False

Question 8

Refer to the information provided in Table 21.3 below to answer the questions that follow.
Table 21.3
   The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y.
-Refer to Table 21.3. The SUM that is calculated from all the error points from the table is equal to

Accepted Answer

A)  +9. 
B)  +11. 
C)  +31. 
D)  +81. 
A)  +9. 
B)  +11. 
C)  +31. 
D)  +81.

Question 9

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
   The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The error for point F is equal to

Accepted Answer

A)  -6. 
B)  -3. 
C)  -1. 
D)  +2. 
A)  -6. 
B)  -3. 
C)  -1. 
D)  +2.

Question 10

Assume a study indicates that attending a class on blackjack strategy improved average winnings by 50 percent. If the null hypothesis is true and the p-value for the 50 percent improvement in winnings is 0.04, then there is a ________ chance of improving your blackjack winnings by 50 percent.

Accepted Answer

A)  0.2% 
B)  0.4% 
C)  4% 
D)  20% 
A)  0.2% 
B)  0.4% 
C)  4% 
D)  20%

Question 11

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
   The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The SUM that is calculated from all the error points from the table is equal to

Accepted Answer

A)  -5. 
B)  +13. 
C)  +25. 
D)  +31. 
A)  -5. 
B)  +13. 
C)  +25. 
D)  +31.

Question 12

Clarissa notices that her satellite TV signal becomes scrambled whenever there is a major thunderstorm in her area. She concludes that the scrambled satellite signal must be causing the severe thunderstorms. Clarissa is

Accepted Answer

A)  definitely confusing correlation with causation. 
B)  very probably correct in her conclusion that the scrambled satellite is the cause of the thunderstorms. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the severe thunderstorms are the cause of the scrambled satellite signal. 
D)  probably misguided in that there is no apparent correlation or causation in this situation. 
A)  definitely confusing correlation with causation. 
B)  very probably correct in her conclusion that the scrambled satellite is the cause of the thunderstorms. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the severe thunderstorms are the cause of the scrambled satellite signal. 
D)  probably misguided in that there is no apparent correlation or causation in this situation.

Question 13

When collecting data to conduct research, if the sample used includes only observations which have remained in the sample over time, making that sample unrepresentative of the broader population, ________ occurs.

Accepted Answer

A)  intention to treat 
B)  survivor bias 
C)  regression discontinuity 
D)  difference-in-differences 
A)  intention to treat 
B)  survivor bias 
C)  regression discontinuity 
D)  difference-in-differences

Question 14

A ________ p-value means the probability is ________ of getting the result you find in the sample data if the null hypothesis is true.

Accepted Answer

A)  small; large 
B)  negative; certain 
C)  small; small 
D)  positive; certain 
A)  small; large 
B)  negative; certain 
C)  small; small 
D)  positive; certain

Question 15

People who are fans of NASCAR tend to eat less organic produce than people who are not NASCAR fans. This is an example of

Accepted Answer

A)  correlation. 
B)  causation. 
C)  difference-in-differences. 
D)  statistical significance. 
A)  correlation. 
B)  causation. 
C)  difference-in-differences. 
D)  statistical significance.

Question 16

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
   The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The error for point B is equal to

Accepted Answer

A)  -3. 
B)  -2. 
C)  +2. 
D)  +3. 
A)  -3. 
B)  -2. 
C)  +2. 
D)  +3.

Question 17

Refer to the information provided in Scenario 21.5 below to answer the questions that follow.
SCENARIO 21.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.
Average Monthly Telephone
Use per Resident (minutes)
  
-Refer to Scenario 21.5. The total cost of telephone service for residents of Zoink in 2017 is ________ Bugabucks.

Accepted Answer

A)  26,125 
B)  52,250 
C)  156,750 
D)  182,875 
A)  26,125 
B)  52,250 
C)  156,750 
D)  182,875

Question 18

Refer to the information provided in Table 21.2 below to answer the questions that follow.
Table 21.2
   The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y.
-Refer to Table 21.2. The error for point A is equal to

Accepted Answer

A)  -3. 
B)  -2. 
C)  +2. 
D)  +3. 
A)  -3. 
B)  -2. 
C)  +2. 
D)  +3.

Question 19

If the values of two variables move together, there is said to be causation, and if one variable results in a change in another variable, they are said to be correlated.

Accepted Answer

A) True 
 B)False

Question 20

Bethany notices that whenever she receives a text message, her roommate Stella is playing her tuba. She concludes that Stella's tuba playing is causing her to receive text messages. Bethany is

Accepted Answer

A)  definitely confusing correlation with causation. 
B)  very probably correct in her conclusion that the tuba playing causes her to receive text messages. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the text messages are causing Stella to play the tuba. 
D)  probably misguided in that there is no apparent correlation or causation in this situation. 
A)  definitely confusing correlation with causation. 
B)  very probably correct in her conclusion that the tuba playing causes her to receive text messages. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the text messages are causing Stella to play the tuba. 
D)  probably misguided in that there is no apparent correlation or causation in this situation.

In a research project, when the sample used is not random, selection bias occurs.

Identifying the causal effects of a policy by looking at two samples that lie on either side of a threshold is called

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point E is equal to

A strategy that identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff is called intention to treat.

If two variables move in opposite directions, they are said to be negatively correlated.

A p-value refers to the probability of obtaining the result that you find in the sample data if the null hypothesis is not true.

Refer to the information provided in Table 21.3 below to answer the questions that follow. Table 21.3 The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y. -Refer to Table 21.3. The SUM that is calculated from all the error points from the table is equal to

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point F is equal to

Assume a study indicates that attending a class on blackjack strategy improved average winnings by 50 percent. If the null hypothesis is true and the p-value for the 50 percent improvement in winnings is 0.04, then there is a ________ chance of improving your blackjack winnings by 50 percent.

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The SUM that is calculated from all the error points from the table is equal to

Clarissa notices that her satellite TV signal becomes scrambled whenever there is a major thunderstorm in her area. She concludes that the scrambled satellite signal must be causing the severe thunderstorms. Clarissa is

When collecting data to conduct research, if the sample used includes only observations which have remained in the sample over time, making that sample unrepresentative of the broader population, ________ occurs.

A p-value means the probability is of getting the result you find in the sample data if the null hypothesis is true.

People who are fans of NASCAR tend to eat less organic produce than people who are not NASCAR fans. This is an example of

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point B is equal to

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point A is equal to

If the values of two variables move together, there is said to be causation, and if one variable results in a change in another variable, they are said to be correlated.

Bethany notices that whenever she receives a text message, her roommate Stella is playing her tuba. She concludes that Stella's tuba playing is causing her to receive text messages. Bethany is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Filters

Exam 21: Critical Thinking About Research

In a research project, when the sample used is not random, selection bias occurs.

Identifying the causal effects of a policy by looking at two samples that lie on either side of a threshold is called

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point E is equal to

A strategy that identifies the causal effects of a policy or factor by looking at two samples that lie on either side of a threshold or cutoff is called intention to treat.

If two variables move in opposite directions, they are said to be negatively correlated.

A p-value refers to the probability of obtaining the result that you find in the sample data if the null hypothesis is not true.

Refer to the information provided in Table 21.3 below to answer the questions that follow. Table 21.3 The data in the table was used to estimate the following consumption function: C = 20 + 0.2Y. -Refer to Table 21.3. The SUM that is calculated from all the error points from the table is equal to

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point F is equal to

Assume a study indicates that attending a class on blackjack strategy improved average winnings by 50 percent. If the null hypothesis is true and the p-value for the 50 percent improvement in winnings is 0.04, then there is a ________ chance of improving your blackjack winnings by 50 percent.

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The SUM that is calculated from all the error points from the table is equal to

Clarissa notices that her satellite TV signal becomes scrambled whenever there is a major thunderstorm in her area. She concludes that the scrambled satellite signal must be causing the severe thunderstorms. Clarissa is

When collecting data to conduct research, if the sample used includes only observations which have remained in the sample over time, making that sample unrepresentative of the broader population, ________ occurs.

A ________ p-value means the probability is ________ of getting the result you find in the sample data if the null hypothesis is true.

People who are fans of NASCAR tend to eat less organic produce than people who are not NASCAR fans. This is an example of

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point B is equal to

Refer to the information provided in Table 21.2 below to answer the questions that follow. Table 21.2 The data in the table was used to estimate the following consumption function: C = 12 + 0.4Y. -Refer to Table 21.2. The error for point A is equal to

If the values of two variables move together, there is said to be causation, and if one variable results in a change in another variable, they are said to be correlated.

Bethany notices that whenever she receives a text message, her roommate Stella is playing her tuba. She concludes that Stella's tuba playing is causing her to receive text messages. Bethany is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Filters

A p-value means the probability is of getting the result you find in the sample data if the null hypothesis is true.