Question 1

More confidence can be had from the results obtained from experiments using a population with ________ variation than from those with ________ variation.

Accepted Answer

A)  high; low 
B)  low; high 
C)  significant; insignificant 
D)  implied; observed 
A)  high; low 
B)  low; high 
C)  significant; insignificant 
D)  implied; observed

Question 2

Refer to the information provided in Scenario 21.3 below to answer the questions that follow.
SCENARIO 21.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of the 200 students who did not attend the program.
-Refer to Scenario 21.3. The efficacy of this program can be best measured by comparing

Accepted Answer

A)  the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 200 students who did not attend the program. 
B)  the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 50 students who were offered the program but chose not to attend. 
C)  the drop-out percentage of the 150 students who were offered the program to the drop-out percentage of the 150 students who were not offered the program. 
D)  the drop-out percentage of the 50 students were offered the program but chose not to attend to the drop-out percentage of the 150 students who were not offered the program. 
A)  the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 200 students who did not attend the program. 
B)  the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 50 students who were offered the program but chose not to attend. 
C)  the drop-out percentage of the 150 students who were offered the program to the drop-out percentage of the 150 students who were not offered the program. 
D)  the drop-out percentage of the 50 students were offered the program but chose not to attend to the drop-out percentage of the 150 students who were not offered the program.

Question 3

People who drive fuel-efficient vehicles tend to recycle more often than people who drive gas guzzlers. 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 4

Identifying the causal effects of a policy by looking at the average change over time in the outcome variable is compared to the average change in a control group 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 5

A research project is conducted by offering a randomly selected 300 of the 500 local Toyota Prius owners a chance to use a new fuel additive for 6 months to see if their gas mileage improves. 225 of the 300 randomly selected Prius owners agree to the offer, 50 of those drop out of the project after 1 month, another 50 drop out after 2 months, and 25 more drop out after 3 months. The rest remain for the duration of the project. Using the intention to treat method, the results from how many of the Prius owners who were randomly selected should be included in the research project?

Accepted Answer

A)  100 
B)  200 
C)  225 
D)  300 
A)  100 
B)  200 
C)  225 
D)  300

Question 6

Daniel notices that every year with a mild winter, his roses begin to bloom in February, but every year with a severe winter, his roses do not begin to bloom until April. He concludes that the severity of the winter is responsible for the month in which his roses begin to bloom. Daniel is

Accepted Answer

A)  definitely confusing correlation with causation. 
B)  very probably correct in his conclusion that the severity of the winter is a cause of when his roses begin to bloom. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the initial blooming of his roses is the cause of the severity of the previous winter. 
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 his conclusion that the severity of the winter is a cause of when his roses begin to bloom. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the initial blooming of his roses is the cause of the severity of the previous winter. 
D)  probably misguided in that there is no apparent correlation or causation in this situation.

Question 7

Sherrie owns a pickup truck and also owns a parrot. Therefore, we can conclude that there is a causal relationship between owning the pickup truck and the parrot for Sherrie.

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 error for point D is equal to

Accepted Answer

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

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 C is equal to

Accepted Answer

A)  -1. 
B)  0. 
C)  +1. 
D)  +2. 
A)  -1. 
B)  0. 
C)  +1. 
D)  +2.

Question 10

The assumption of no effect from the results of an experiment is known as the null hypothesis.

Accepted Answer

A) True 
 B)False

Question 11

Refer to the information provided in Scenario 21.4 below to answer the questions that follow.
SCENARIO 21.4: In a randomized 1-year trial of 400 Mr. Lincoln hybrid tea rose bushes with rose rosette disease, 200 are slated to receive only a sulphur treatment (we will call this Group A), and the other 200 are slated to receive the sulphur treatment and an additional neem oil treatment 4 months later (we will call this Group B). Assume that the neem oil treatment is ineffective in treating rose rosette disease, so on average, the same proportion of rose bushes in each group will die of the disease. In Group B, 25 of the 200 rose bushes die in the 4-month period leading up to the neem oil treatment. Of the 175 bushes left, 25 die in the 8 months following the neem oil treatment. Since we know the neem oil treatment is ineffective, the rose bushes in Group A will, on average, suffer the same fate as those in Group B, with 25 bushes dying in the first 4 months and another 25 dying in the following 8 months.
-Related to the Economics in Practice on p. 404: Refer to Scenario 21.4. Since we know that the neem oil treatment is ineffective in curing rose rosette disease, when we use the intention to treat method, the rate of death due to rose rosette disease becomes ________ than when we do not use the intention to treat method.

Accepted Answer

A)  lower for Group B 
B)  higher for Group B 
C)  lower for Group A 
D)  lower for Group A and higher for Group B 
A)  lower for Group B 
B)  higher for Group B 
C)  lower for Group A 
D)  lower for Group A and higher for Group B

Question 12

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. Which of the following points is (are) the worst fit for the given consumption function?

Accepted Answer

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

Question 13

Refer to the information provided in Scenario 21.3 below to answer the questions that follow.
SCENARIO 21.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of the 200 students who did not attend the program.
-Refer to Scenario 21.3. Based on the information in the scenario, can you conclude that the after-school program had a positive effect?

Accepted Answer

A)  Yes, because the drop-out percentage for those students who attended the program was lower than the drop-out percentage for those students who did not attend the program. 
B)  No, because less than half of the at-risk students attended the program. 
C)  Yes, because the 150 students offered the program were a random sample. 
D)  No, because we cannot assume the 100 students who accepted the offer were a random sample. 
A)  Yes, because the drop-out percentage for those students who attended the program was lower than the drop-out percentage for those students who did not attend the program. 
B)  No, because less than half of the at-risk students attended the program. 
C)  Yes, because the 150 students offered the program were a random sample. 
D)  No, because we cannot assume the 100 students who accepted the offer were a random sample.

Question 14

Zachary notices that every time he washes his car, it rains the next day. He concludes that washing his car causes the next day's rain. Zachary is

Accepted Answer

A)  definitely confusing correlation with causation. 
B)  very probably correct in his conclusion that washing his car causes the next day's rain to fall. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the upcoming rain was responsible for Zachary's decision to wash his car. 
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 his conclusion that washing his car causes the next day's rain to fall. 
C)  likely correct that there is causation, but the causation is more likely running in the opposite direction in that the upcoming rain was responsible for Zachary's decision to wash his car. 
D)  probably misguided in that there is no apparent correlation or causation in this situation.

Question 15

Two variables are said to be negatively correlated if their values

Accepted Answer

A)  are always negative. 
B)  only decrease but never increase. 
C)  tend to move in the same direction. 
D)  tend to move in opposite directions. 
A)  are always negative. 
B)  only decrease but never increase. 
C)  tend to move in the same direction. 
D)  tend to move in opposite directions.

Question 16

Which of the following examples would most likely be subject to selection bias?

Accepted Answer

A)  1,000 registered voters in Nashville are called and asked who they are planning to vote for in the upcoming Nashville mayoral election. 
B)  500 University of Wisconsin students are polled on their opinion about a possible tuition hike at their school. 
C)  750 National Rifle Association members are questioned to obtain the public's opinion about pending federal legislation regarding stricter gun control laws. 
D)  60 members of a 100-member neighborhood homeowners' association vote to approve funding for private security patrols in their neighborhood. 
A)  1,000 registered voters in Nashville are called and asked who they are planning to vote for in the upcoming Nashville mayoral election. 
B)  500 University of Wisconsin students are polled on their opinion about a possible tuition hike at their school. 
C)  750 National Rifle Association members are questioned to obtain the public's opinion about pending federal legislation regarding stricter gun control laws. 
D)  60 members of a 100-member neighborhood homeowners' association vote to approve funding for private security patrols in their neighborhood.

Question 17

Dierdre just gave birth to twins and now finds herself buying diapers on a weekly basis. Therefore, we can conclude that there is a causal relationship between having newborn twins and purchasing diapers for Dierdre.

Accepted Answer

A) True 
 B)False

Question 18

A method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group is called difference-in-differences.

Accepted Answer

A) True 
 B)False

Question 19

A p-value of 0.03 means that there is only a 0.03% chance of obtaining the measured result.

Accepted Answer

A) True 
 B)False

Question 20

Selection bias can result from data samples

Accepted Answer

A)  that are not random. 
B)  that compare groups engaged in different activities. 
C)  from people who make different choices. 
D)  all of the above 
A)  that are not random. 
B)  that compare groups engaged in different activities. 
C)  from people who make different choices. 
D)  all of the above

More confidence can be had from the results obtained from experiments using a population with variation than from those with variation.

People who drive fuel-efficient vehicles tend to recycle more often than people who drive gas guzzlers. This is an example of

Identifying the causal effects of a policy by looking at the average change over time in the outcome variable is compared to the average change in a control group is called

Daniel notices that every year with a mild winter, his roses begin to bloom in February, but every year with a severe winter, his roses do not begin to bloom until April. He concludes that the severity of the winter is responsible for the month in which his roses begin to bloom. Daniel is

Sherrie owns a pickup truck and also owns a parrot. Therefore, we can conclude that there is a causal relationship between owning the pickup truck and the parrot for Sherrie.

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 error for point D 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 C is equal to

The assumption of no effect from the results of an experiment is known as the null hypothesis.

Zachary notices that every time he washes his car, it rains the next day. He concludes that washing his car causes the next day's rain. Zachary is

Two variables are said to be negatively correlated if their values

Which of the following examples would most likely be subject to selection bias?

Dierdre just gave birth to twins and now finds herself buying diapers on a weekly basis. Therefore, we can conclude that there is a causal relationship between having newborn twins and purchasing diapers for Dierdre.

A method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group is called difference-in-differences.

A p-value of 0.03 means that there is only a 0.03% chance of obtaining the measured result.

Selection bias can result from data samples

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

More confidence can be had from the results obtained from experiments using a population with ________ variation than from those with ________ variation.

People who drive fuel-efficient vehicles tend to recycle more often than people who drive gas guzzlers. This is an example of

Identifying the causal effects of a policy by looking at the average change over time in the outcome variable is compared to the average change in a control group is called

Daniel notices that every year with a mild winter, his roses begin to bloom in February, but every year with a severe winter, his roses do not begin to bloom until April. He concludes that the severity of the winter is responsible for the month in which his roses begin to bloom. Daniel is

Sherrie owns a pickup truck and also owns a parrot. Therefore, we can conclude that there is a causal relationship between owning the pickup truck and the parrot for Sherrie.

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 error for point D 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 C is equal to

The assumption of no effect from the results of an experiment is known as the null hypothesis.

Zachary notices that every time he washes his car, it rains the next day. He concludes that washing his car causes the next day's rain. Zachary is

Two variables are said to be negatively correlated if their values

Which of the following examples would most likely be subject to selection bias?

Dierdre just gave birth to twins and now finds herself buying diapers on a weekly basis. Therefore, we can conclude that there is a causal relationship between having newborn twins and purchasing diapers for Dierdre.

A method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group is called difference-in-differences.

A p-value of 0.03 means that there is only a 0.03% chance of obtaining the measured result.

Selection bias can result from data samples

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

More confidence can be had from the results obtained from experiments using a population with variation than from those with variation.