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.   Experiment with alternative circumstances
C.   Increase understanding of how a relationship actually works
D.   Predicts outcomes under various hypothetical positions
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.   Tammy did both the plowing and the singing
B.   Tammy specialized in plowing and Bob in singing
C.   Bob did both plowing and singing
D.   Tammy specialized in singing and Bob in plowing
Question #3
Which of the following statements is correct?
A.   A theory may result from a tested and confirmed hypothesis
B.   A hypothesis may result from a tested and confirmed theory
C.   Theory and Hypothesis are interchangeable terms for the same thing
D.   A hypothesis is a theory who formulation relies on mathematics
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 transporting the soldiers to combat
C.   The dollar costs of payroll for the soldiers
D.   The cost of feeding and clothing the new soldiers
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.   It is impossible to determine the slope
B.   Positive slope
C.   Negative slope
D.   Slope always equal to one
Question #6
Tools used by economists include
A.   Mathematical reasoning
B.   All of these are correct
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 causation implies correlation
B.   Reflects the fallacy of composition
C.   Assumes that correlation implies causation
D.   Should more properly be considered a theory
Question #8
Abstraction can be thought of as
A.   Ignoring reality in order to build theory
B.   Omitting unimportant details in order to understand complex phenomenon
C.   Stylizing reality rather than analyzing cause and effect
D.   Assuming complexity when simplicity will do
Question #9
Economics is a social science rather than a "hard" science like physics because
A.   Economists must explain their theories to policy makers who lack formal mathematical training
B.   Economics is easier to study than physics
C.   Economists study human behavior, which is affected by an unpredictable and vast range of influences.
D.   Economists abstract from reality when creating their theories

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