2015-08-13
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46. The use of theory and observation is more difficult in economics than in sciences such as physics due to
a. the difficulty in actually performing an experiment in an economic system.
b. the difficulty in devising an economic experiment.
c. the difficulty in evaluating an economic experiment.
d. all of the above.
ANSWER: a. the difficulty in actually performing an experiment in an economic system.
47. Because it is difficult for economists to use experiments to generate economic data,
a. they do without.
b. they use whatever data the world gives them.
c. they make up the data.
d. they ask policymakers to conduct experiments for them.
ANSWER: b. they use whatever data the world gives them.
48. Economists make assumptions
a. to diminish the chance of wrong answers.
b. to make certain that all necessary variables are included.
c. because all scientists make assumptions.
d. to make the world easier to understand.
ANSWER: d. to make the world easier to understand.
49. What would be the best statement about a theory based on assumptions which are not true?
a. If the assumptions underlying the theory are not true, the theory must be false.
b. The ideas may be good in theory, but not in practice.
c. The theory is a good one if no logical mistakes were made in developing it.
d. The theory is a good one if it helps us to understand how the world works.
ANSWER: d. The theory is a good one if it helps us to understand how the world works.
50. What is the goal of theories?
a. to provide an interesting, but not useful, framework of analysis
b. to help scientists understand how the world works
c. to demonstrate that the developer of the theory is capable of logical thinking
d. to provoke stimulating debate in scientific journals
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ANSWER: b. to help scientists understand how the world works
51. What is the goal of theories?
a. to provide an interesting, but not useful, framework of analysis
b. to help scientists understand how the world works
c. to demonstrate that the developer of the theory is capable of logical thinking
d. to provoke stimulating debate in scientific journals
ANSWER: b. to help scientists understand how the world
52. What is the goal of theories?
a. to provide an interesting, but not useful, framework of analysis
b. to help scientists understand how the world works
c. to demonstrate that the developer of the theory is capable of logical thinking
d. to provoke stimulating debate in scientific journals
ANSWER: b. to help scientists understand how the world
52. A model
a. simplifies reality.
b. can explain how the economy is organized.
c. assumes away irrelevant details. d. all of the above
53. Economic models are usually composed of
a. plastic.
b. beautiful people.
c. assumptions only.
d. diagrams and equations.
ANSWER: d. diagrams and equations.
54. Which of the following is the most accurate statement about economic models?
a. Economic models attempt to mirror reality exactly.
b. Economic models are useful, but should not be used for policy-making.
c. Economic models cannot be used in the real world because they omit details.
