Econ 102 - Principles of Macroeconomics » Fall 2022 » Economic Thinking and Economic Reasoning Quiz

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Question #1
"The hotter it gets, the more water people drink." This statement implies the relationship between temperature and water consumption must have a
A.   Slope always equal to one
B.   Positive slope
C.   It is impossible to determine the slope
D.   Negative slope
Question #2
Which of the following statements is correct?
A.   Theory and Hypothesis are interchangeable terms for the same thing
B.   A hypothesis is a theory who formulation relies on mathematics
C.   A hypothesis may result from a tested and confirmed theory
D.   A theory may result from a tested and confirmed hypothesis
Question #3
Economics is a social science rather than a "hard" science like physics because
A.   Economists study human behavior, which is affected by an unpredictable and vast range of influences.
B.   Economists abstract from reality when creating their theories
C.   Economists must explain their theories to policy makers who lack formal mathematical training
D.   Economics is easier to study than physics
Question #4
During one winter quarter at Frozen University, snow falls every Friday night. Students assume that, on their campus, Fridays cause snow. This hypothesis
A.   Should more properly be considered a theory
B.   Assumes that correlation implies causation
C.   Reflects the fallacy of composition
D.   Assumes that causation implies correlation
Question #5
Tools used by economists include
A.   Historical study
B.   Statistical inference
C.   All of the choices are correct
D.   Mathematical reasoning
Question #6
During a war, a government will often draft people, most of whom are presently employed, into the army. An economists, computing the real cost of the war, would be sure to include which of the following items?
A.   The cost of feeding and clothing the new soldiers
B.   The value of civilian goods no longer produced by the new soldiers
C.   The cost of transporting the soldiers to combat
D.   The dollar costs of payroll for the soldiers
Question #7
Abstraction can be thought of as
A.   Omitting unimportant details in order to understand complex phenomenon
B.   Stylizing reality rather than analyzing cause and effect
C.   Assuming complexity when simplicity will do
D.   Ignoring reality in order to build theory
Question #8
Economists make assumptions because
A.   Analysis without assumptions would be impossibly complex
B.   They need to incorporate value judgments into their models
C.   Assumptions allow economists to ignore things that they cannot explain
D.   Assumptions are the final product of careful economic analysis
Question #9
Economists use models in order to
A.   All of these are correct
B.   Increase understanding of how a relationship actually works
C.   Experiment with alternative circumstances
D.   Predicts outcomes under various hypothetical positions
Question #10
Suppose Tammy grew up on a farm and is very good at plowing. In addition suppose she is a popular country singer who earns $4,000 per performance. If her husband Bob can plow (but not as well as Tammy) but he can't carry a tune, then it would be most efficient if
A.   Tammy did both the plowing and the singing
B.   Bob did both plowing and singing
C.   Tammy specialized in plowing and Bob in singing
D.   Tammy specialized in singing and Bob in plowing

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