ECN Chapter 1 and 2: Homework and Quiz

Economics differs from these other social sciences because it also addresses these three key concepts

Optimization, equilibrium, empiricism

The goal of optimization for an individual is to maximize

Overall well-being

Optimization

People weigh costs and benefits when making a decision

Which of the following statements is true

Cost benefit analysis can also be used for normative economic analysis

Which of the following correctly defines the term equilibrium

It refers to a situation in which are at the moment agents are simultaneously optimizing

A policy such as passing an epic economic stimulus to spread the economy would be studied under ______ Since it deals with ______

Macroeconomics; the economy as a whole

Demonstrate causation or correlation with the following examples:

More police officers and lower crime rates is likely to be causation. More economic growth and higher employment levels is likely causation. The lengths of women's skirts and stick market performance is likely to be correlation.

The ____________ implies that a college student who drops out of school one month before graduation shouldnearn much less than a student who graduates

Signaling argument

What is meant by randomization in the context of an economic experiment

Subjects are assigned by chance, rather than by choice to a group

Comparing a set of feasible alternative and picking the best one is an optimization process called

Cost-benefit analysis

Which of the following is subject to the free-rider problem. A neighborhood watch, public library's, national security, all of the above

D all of the above

Empiricism refers to using ____ to analyze the world

Data

Equilibrium

No one would benefit from changing his or her behavior

This simple economic model predicts that a fall in the price of bus tickets means that more people will take the bus. However, you observe that some people still do not take the bus even after the of a ticket fell. Is this model incorrect

No, because it predicts the outcome of increased bus ridership on average

The ethical implications of a hot lead to baited government policy would best be considered a

Normative question, Since it deals with a subjective issue based on personal preferences

The statement that the United States has an unemployment rate that is too high is a _____ statement since it describes what people _____

Normative; ought to do

No, the model is a simplified representation of reality

Suppose you have just been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. During a meeting with your client, the CEO asks if your economic models include all factors that impact gasoline prices. What is your response

A variable is a factor that

Takes different values at different points of time

He is still unconvinced about the reliability of using economic models to make business decisions. You can answer this concern by sharing that you will confirm the accuracy of the model by ______ with ____

Testing it's predictions; empirical data

Which of the following statements is true

The government is an example of an economic agent

How does the sample size affect the validity of an empirical argument

The larger sample size the better

Median

The median is the numerical value separating the higher half of your data from the lower half. Arrange lowest to highest.

Let's say that you are trying to decide what to do on Friday at 11 AM do you rank your possible options from the one you value the most to the one that you value the least in the following order going to class sleeping in late going to work early getting lunch and going to the gym to exercise and watching television. If you decide to go to class then what do we know about the opportunity cost of your decision

The opportunity cost would be sleeping in late since it was your next best option

Which of the following is not a problem associated with Wyndham has experience? The participants in the treatment group in the control group are not identical in our respects. Sometimes of spam is our contact at portly, which may lead to an accurate results. Getting in me to get answers to some important questions may not be possible. Experiments can sometimes get expensive for the researcher

The participants in the treatment group in the control group are not identical in all respects

How do economists distinguish between models that work and those that don't

They test their models against real world data

Doctor once a year fully covered; others with copay less frequently..using the concept of natural experiment, which of the following statements is true about the scenario

This is a decent natural experiment

You should collect___ amount of data to create ___ to test the ____ indictated by the economic model

A large; empirical evidence; hypotheses

Causation occurs when there is _________

A logical cause-and-effect relationship

Mean

Add together and then divide

The definition of economic states that it is the study of how

Agents choose to allocate scarce resources and the impact of those choices on society

Which of the following would be considered a scarce resource for producers. Low skilled labor natural resources for production equipment and tools all of the above

All of the above

When a cost benefit analysis is done

All relevant options must be considered

Search the inputs used to produce goods are scarce, the total amount produced of most goods is ____[[ The amount that consumers would like to buy. To allocate the goods produced to the people who value them the most, we use ______

Below; the price mechanism

What tool do you employed to analyze the relationship between gasoline prices and consumer

Economic models

Which of the following do you provide as a positive question

How much is the national debt

The __________ implies that a college student drops out of school one month before graduation shouldnearn almost the same as a student who graduates

Human capital argument

Positive questions asks__________ and normative questions ask ________

What is or what will be; what ought to be

How would you test this model

You should run a natural experiment by analyzing bus ridership and price changes

Suppose you decide to take an economics courses that are taking a course in Japanese history or Russian poetry which of the following are benefits of taking economics course

You will learn to make better choices in your daily life you can apply economic concepts such as cost-benefit analysis to help you make better decisions you can use economic analysis to help you better analyze other people's behavior

Micro economic studies ____ While macro economics studies

A small piece of the overall economy; the economy as a whole

When deciding whether to install visible countdown time for pedestrians in crosswalks which of the following would be considered In the cost-benefit analysis

A, B, C, D

In which of the following areas will taking in economics course help benefit you throughout life. It will help you analyze in particular behavior in a variety of situations. It will instill the concepts that what activity is given up by a decision plays in important role in making choices. It will give you the logic behind using cost-benefit analysis when evaluating decisions

All of the above

Suppose that you allocate $20 each week for your entertainment budget. This money is spent on two items are they renting movies for one dollar each at Redbox or downloading songs from iTunes at one dollar

Amount spent on iTunes + amount spent at Redbox equals $20

Identify the cause-and-effect in the following examples lower in fat mortality is ____ And improvement in nutrition is ____. Search in cocoa prices is ____ In the past attack on the Coco crop is

An effect; the cause. An effect; the cause.

Which of the following is an example of a normative economics statement

An increase in Social Security benefits will increase the welfare of our economic agents

To say that economists use the scientific method means that they are using

An ongoing process to develop models of the world and then test and evaluate those models

When making your decision about which activity to choose, you should consider the monetary cost ____ The opportunity cost of the activities. The goal is to choose the option that offers the greatest ______ benefit

As well as; net

Policy decisions made by the government are analyzed by

Both microeconomics and macroeconomics

Debbie a member of your team advocates finding random people and then breaking them up into two groups and would be shown an increase in the price of gas before taking the survey. Group B would be told there was no increase in the price of gas before taking the survey. Troy, another member of your team, recommend finding two groups of people already sorted by whether or not they have recently noticed an increase in the price of gas

Debbie method: controlled experiment Troys method: natural experiment

Suppose you have been hired as a management consultant by a major oil company to help it optimally price of gasoline as its service stations. Your client would like your team to perform a study on customers gasoline purchasing habits when they notice price increases

Design and execute an experiment

Suppose your new year resolution is to get back in shape. You are considering various ways of doing this you can sign up for a gym membership, walk to work, take the stairs of that of the elevator, or watch her diet how would you evaluate these options and choose an app to

Do a cost-benefit analysis to compare the alternatives

An individual has eight hours to spare she has to divide her time between two activities reading and writing which of the following allocations were completely it's at the individuals budget

Five hours of reading in three hours of writing

Your client becomes critical of your​ "sloppy" technique of using a model that does not include all factors. What is the most appropriate reply to this​ criticism?

Economic models are meant to be approximations that predict what happens in most circumstances

Empiricism

Economists use data to analyze what is happening in the world

For a Market to be in equilibrium three conditions must hold you amount produced by sellers must be ______ The amount purchased by Byers. The cost of making a product must be _____ The final price at which the product sells. Buyers must place a value on the uses of the product that is ____ The cost of buying the product

Equal to; less than; greater than.

Which of the Following is true regarding the concept of causation

It describes I wanna vent can bring about change in another

Free riding occurs when ______ Are out of sync with ______

Peoples private benefit; the public interest

The statement that the United States have an average inflation rate of 2.1% is a ____ Statement since it describes what people _____

Positive; actually do

Suppose you have just been hired as a management consultant by major oil company to help at optimally price gasoline as it service stations part. And your first presentation to management how would you describe your plan methodology to program the analysis

Scientific method

Which of the following examples do you provide as a normative question

Should welfare be repealed

During the process of optimization economist believe that people are considering

The feasibility of a choice given the information available at the time

Which of the following implies that the model is an approximation

The predictions of the model will hold in most cases but not all

Group A is the _________ and Group B is the _________.

Treatment group; control group

Which of the following is my susceptible to live free where a problem: government-funded symphonies or city-wide peat control

Use of city-Wide pest control is more susceptible since even those who don't pay taxes still benefit the government-funded symphonies can charge for admission, so that everyone who goes paid their share

Which of the following is not an example of causation

Wearing your lucky socks while watching the football game lead to your team winning

The opportunity cost of an activity is a measure of ____ When you do that activity

What is given up

The cause, or independent variable should be plotted on the ______and the effect, or dependent variable should be plotted on the _____

x-axis; y-axis