1.3

which of the following statements about a hypothesis is correct

a hypothesis si a statement that could in principle turn out to be incorrect

assuming tha these statistics are available or could be gathered, are they likely to resolve the normative issues in this debate

No

why are models based on assumptions

because models have to be simplified to be useful

which of the following statements about an economic variable is correct?

an economic variable is something measurable that can have different values

any attempt to determine whether or not this is a good system must focus on its

cost and benefits

which of the following statements about economics as a social science is correct

economics studies the actions of individuals

this system may help protect consumers by ensuring that

future doctors receive high-quality training

when a doctor closes a private practice and becomes an employee of a hospital working for a fixed salary, the incentives a doctor faces to work hard change because the doctor

has a steady income from a hospital salary that does not depend on the number of patients

which of the following is NOT a step that economists use in developing a useful economic model?

make a value judgement about the merits of the hypothesis

the federal government should spend more on AIDS research. This represents _____

normative analysis

the prices of coffee at Starbucks is too high. this represents _____

normative analysis

what type of economic analysis is concerned with the way things ought to be?

normative analysis

which of the following statements about normative analysis is correct

normative analysis is concerned with what ought to be

which of the following economic statistics would be the most useful in evaluating the positive elements in this debate

med school, physician, age, poverty, all of the above

Dr. Strangleove-is it possible to test this theory

no

which of the following constitutes an important difference between doctors' private practices and other small businesses, such as restaurants and hardware stores?

payments, costly, prices, all of the above

a 50 cent per pack tax on cigarettes will reduce smoking by teenagers by 12 percent. this represents _____

positive analysis

rising paper prices will increase textbook prices. This represents _____

positive analysis

which of the following statements about positive analysis is correct

positive analysis is concerned with what is

when it comes to assessing how this system affects the financial interests of doctors and the well being of consumers, it may be that the former gain more simply because

there are far fewer of them, hence each stands to gain much from supply restrictions

Suppose economists develop economic model and find that "it works great in theory, but it fails in practice." Which of the following should the economists do next?

they should revise the model in light of its failure to explain or predict real world events

economists use models

to answer questions and analyze issues

economic data is used

to test models

over the years the economic incentives for doctors to operate private practices as opposed to becoming salaried hospital employees have

weakened to the extent that a majority of doctors now work for hospitals