Econ 102 - Principles of Macroeconomics » Spring 2023 » Economic Thinking and Economic Reasoning Quiz

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Question #1
Economists use models in order to
A.   All of these are correct
B.   Predicts outcomes under various hypothetical positions
C.   Experiment with alternative circumstances
D.   Increase understanding of how a relationship actually works
Question #2
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
Question #3
Which of the following statements is correct?
A.   A theory may result from a tested and confirmed hypothesis
B.   Theory and Hypothesis are interchangeable terms for the same thing
C.   A hypothesis is a theory who formulation relies on mathematics
D.   A hypothesis may result from a tested and confirmed theory
Question #4
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 value of civilian goods no longer produced by the new soldiers
B.   The cost of feeding and clothing the new soldiers
C.   The dollar costs of payroll for the soldiers
D.   The cost of transporting the soldiers to combat
Question #5
"The hotter it gets, the more water people drink." This statement implies the relationship between temperature and water consumption must have a
A.   Positive slope
B.   Slope always equal to one
C.   Negative slope
D.   It is impossible to determine the slope
Question #6
Tools used by economists include
A.   All of these are correct
B.   Mathematical reasoning
C.   Statistical inference
D.   Historical study
Question #7
During one winter quarter at Frozen University, snow falls every Friday night. Students assume that, on their campus, Fridays cause snow. This hypothesis
A.   Assumes that correlation implies causation
B.   Assumes that causation implies correlation
C.   Should more properly be considered a theory
D.   Reflects the fallacy of composition
Question #8
Abstraction can be thought of as
A.   Stylizing reality rather than analyzing cause and effect
B.   Ignoring reality in order to build theory
C.   Assuming complexity when simplicity will do
D.   Omitting unimportant details in order to understand complex phenomenon
Question #9
Economics is a social science rather than a "hard" science like physics because
A.   Economics is easier to study than physics
B.   Economists study human behavior, which is affected by an unpredictable and vast range of influences.
C.   Economists must explain their theories to policy makers who lack formal mathematical training
D.   Economists abstract from reality when creating their theories

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