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.   Negative slope
D.   It is impossible to determine the slope
Question #2
Which of the following statements is correct?
A.   A hypothesis is a theory who formulation relies on mathematics
B.   Theory and Hypothesis are interchangeable terms for the same thing
C.   A theory may result from a tested and confirmed hypothesis
D.   A hypothesis may result from a tested and confirmed theory
Question #3
Economics is a social science rather than a "hard" science like physics because
A.   Economics is easier to study than physics
B.   Economists abstract from reality when creating their theories
C.   Economists must explain their theories to policy makers who lack formal mathematical training
D.   Economists study human behavior, which is affected by an unpredictable and vast range of influences.
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.   Reflects the fallacy of composition
B.   Assumes that correlation implies causation
C.   Should more properly be considered a theory
D.   Assumes that causation implies correlation
Question #5
Tools used by economists include
A.   All of the choices are correct
B.   Historical study
C.   Statistical inference
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 cost of transporting the soldiers to combat
C.   The value of civilian goods no longer produced by the new soldiers
D.   The dollar costs of payroll for the soldiers
Question #7
Abstraction can be thought of as
A.   Ignoring reality in order to build theory
B.   Assuming complexity when simplicity will do
C.   Stylizing reality rather than analyzing cause and effect
D.   Omitting unimportant details in order to understand complex phenomenon
Question #8
Economists make assumptions because
A.   Assumptions are the final product of careful economic analysis
B.   Assumptions allow economists to ignore things that they cannot explain
C.   They need to incorporate value judgments into their models
D.   Analysis without assumptions would be impossibly complex
Question #9
Economists use models in order to
A.   Increase understanding of how a relationship actually works
B.   Experiment with alternative circumstances
C.   All of these are correct
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.   Bob did both plowing and singing
B.   Tammy specialized in singing and Bob in plowing
C.   Tammy specialized in plowing and Bob in singing
D.   Tammy did both the plowing and the singing

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