Model A is superior to model B if A) it contains more real world detail than model B. B) it contains fewer unrealistic assumptions than model B. C) its predictions correspond more closely to the facts than the predictions of model B. D) it is preferred by a majority of researchers in a public opinion poll. E) it is scientifically "elegant."
11) Model A is superior to model B if
A) it contains more real world detail than model B.
B) it contains fewer unrealistic assumptions than model B.
C) its predictions correspond more closely to the facts than the predictions of model B.
D) it is preferred by a majority of researchers in a public opinion poll.
E) it is scientifically "elegant."
12) In choosing among alternative models, economists generally have the strongest preference for models that
A) have assumptions that are close to exact replicas of reality.
B) are detailed and complex, with every available fact and figure included.
C) have few assumptions and are as simple as possible, even if they cannot predict very well.
D) predict better than any other that is available.
E) have assumptions that are complicated.
13) A normative statement is a statement regarding
A) what is usually the case.
B) the assumptions of an economic model.
C) what ought to be.
D) the predictions of an economic model.
E) what is.
14) "The rich face higher income tax rates than the poor" is an example of a
A) a normative statement.
B) a positive statement.
C) a predictive statement.
D) a theoretical statement.
E) an analytical statement.
15) An economic model is tested by
A) examining the realism of its assumptions.
B) comparing its predictions with the facts.
C) comparing its complexity to other models that deal with similar issues.
D) the Testing Committee of the Canadian Economic Association.
E) comparing its descriptions and examining the realism of its assumptions.
16) Which of the following is a positive statement?
A) Low rents restrict the supply of housing.
B) Low rents are better for a city than high rents.
C) Housing costs too much.
D) Owners of apartment buildings ought to be free to charge whatever rent they want.
E) Government should control the rents that apartment owners charge.
17) "The rich face higher income tax rates than the poor, which is not good since it is the rich who provide jobs for the poor." This is an example of
A) a normative statement.
B) a positive statement.
C) a negative statement.
D) a theoretical statement.
E) a descriptive statement.
18) An economic model is
A) tested by examining the realism of its assumptions.
B) useful if it predicts well, even if its assumptions are not realistic.
C) tested by the Testing Committee of the Canadian Economic Association.
D) not useful unless it predicts with 100 percent accuracy.
E) not useful because it simplifies real problems.
19) Select the best statement about economic models.
A) An economic model must always be correct in its predictions or it must be discarded.
B) An economic model is evaluated based on the realism of its assumptions.
C) An economic model should not generate predictions about actual events in the real world, since it discusses only abstract events.
D) An economic model will be discarded if its predictions are often in conflict with the facts.
E) Economic models are all false.
20) To disentangle cause and effect, economists use economic models and use ________ to test the predictions of those models.
A) the what, how, and for whom questions
B) positive statements and normative statements
C) personal economic policy, business economic policy, and government economic policy
D) natural experiments, statistical investigations, and economic experiments
E) marginal benefit and marginal cost
21) Which of the following statements are positive?
1. The federal government should increase production of biofuels.
2. Air travel has increased since September 11.
3. The greatest number of accidents are caused by drunk drivers.
4. We ought to have a cure for cancer.
A) statements 1 and 4 are positive
B) statements 2 and 3 are positive
C) statements 1 and 2 are positive
D) statements 3 and 4 are positive
E) statements 2 and 4 are positive
22) Which of the following statements are true regarding "positive" statements?
A) I and II
B) II and III
C) I and III
D) I, II and III
E) None of the statements are true.
23) Which of the following is a normative statement?
A) Next year's inflation rate will be under 4 percent.
B) Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer.
C) Government cuts in welfare spending impose an unfair hardship on the poor.
D) A wheat shortage or surplus is always the result of federal government policies.
E) Hurricane Irene caused more damage in the United States than Hurricane Katrina.
Step by step
Solved in 4 steps
