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
