Question 1

Which of the following is not a prediction of the theory on baseball caps and cheating?
A)More people will wear baseball caps on test days than on lecture days.
B)More people will wear baseball caps for multiple choice tests than for essay tests.
C)More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test.
D)Baseball caps are more likely to be worn on backwards (than frontwards) on test days than on lecture days.
E)none of the above

Accepted Answer

The answer of Which of the following is not a...

Question 2

Suppose that the marginal benefits of giving a gift are greater than the marginal costs of giving a gift. Is the efficient number of gifts being given? If not, what should the gift giver do to move toward the efficient number of gifts being given.
A)Yes, the efficient number of gifts is being given since the marginal benefit of gift giving is greater than the marginal cost of gift giving.
B)No, the efficient number of gifts is not being given.The gift giver should increase the number of gifts given to move toward efficiency.
C)No, the efficient number of gifts is not being given.The gift giver should decrease the number of gifts given to move toward efficiency.
D)No, the efficient number of gifts is not being given.However, it is not possible to determine whether the gift giver should increase or decrease gift giving to move toward efficiency.

Accepted Answer

The answer of Suppose that the marginal benefits of giving...

Question 3

Smith drives his car numerous places. Sometimes he drives his car around his residential neighborhood and sometimes he drives it on the highway. Occasionally, Smith gets peeved with the way other people drive and makes a rude gesture to them. Based on one of the theories discussed in the textbook, he is
A)more likely to make a rude gesture to another driver on the highway than in his residential neighborhood.
B)less likely to make a rude gesture to another driver on the highway than in his residential neighborhood.
C)equally likely to make a rude gesture to another driver on the highway as in the residential neighborhood.
D)There is not enough information provided to answer this question.

Accepted Answer

According to the theory of situational factors, people are more likely to exhibit certain behaviors in specific situations. In this case, Smith is more likely to make a rude gesture to another driver on the highway than in his residential neighborhood because the situational factors (e.g. higher speeds, more traffic, anonymity) on the highway may increase his frustration and likelihood to express it in a negative way.

Question 4

A gift-giver's efficient number of gifts (to give to a gift-recipient) has fallen from 10 to 8. This could be because
A)the gift-giver's marginal benefit curve for giving gifts shifted down and left.
B)the gift-giver's marginal cost curve of giving gifts shifted up and left.
C)the gift-recipient "fell out" of the gift-giver's utility function.
D)a and b
E)none of the above

Accepted Answer

The reduction in the efficient number of gifts could be due to a decrease in the gift-giver's marginal benefit (a) or an increase in the marginal cost of giving gifts (b). Therefore, choices A and B are both possible explanations for the change. Choice C is not a viable explanation since the gift-giver's utility function would not necessarily have a direct impact on the efficient number of gifts.

Question 5

The instructors at College A are regularly late for their office hours. Based on a theory presented in the textbook, we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A.
A)lower; higher; small
B)higher; lower; small
C)lower; higher; large
D)higher; lower; large

Accepted Answer

The theory likely suggests that when instructors are regularly late, the quality of education or service provided is lower, leading to a situation where the actual student tuition (what students are willing to pay) is lower than the equilibrium tuition (what would be paid if the service met expectations). A large gap indicates a significant difference in perceived value, which aligns with the scenario at College A.

Question 6

A man moves from a large city to a small town. In the small town he seems like a very different person than the person he was in the big city. For instance, he is more polite in the small town than he was in the big city. This could be because
A)the costs of his being impolite are higher in the big city than in the small town.
B)the costs of his being impolite are higher in the small town than in the big city.
C)he is a happier person in the small town and it could be that happier people are more polite.
D)b and c
E)a and c

Accepted Answer

The cost of being impolite is higher in a smaller town where people are more interconnected, and thus, the man might feel more accountable. Additionally, the man might feel happier in the small town, leading to a more positive demeanor. Therefore, both options B and C are correct. Option A is incorrect because the cost of being impolite is likely higher in a smaller town, not a larger one.

Question 7

Which of the following is not a prediction of the theory on baseball caps and cheating?
A)More people will wear baseball caps on test days than on lecture days.
B)More people will wear baseball caps for multiple choice tests than for essay tests.
C)More people will wear baseball caps when students sit close to each other in class and are taking a test than when students sit far apart from each other and are taking a test.
D)b and c
E)none of the above

Accepted Answer

All of the options listed are predictions of the theory on baseball caps and cheating.

Question 8

Which of the following is inconsistent with the burglary crime model presented in the textbook?
A)The burglary rate rises during recessions.
B)The burglary rate declines during recessions.
C)The burglary rate remains does not change because of a recession.
D)The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary.
E)a and d

Accepted Answer

The answer of Which of the following is inconsistent with...

Question 9

It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV) to service all of its customers at a given point in time. Based on one of theories discussed in the textbook, this is probably because
A)the equilibrium "price" to be served by the DMV is lower than the "price" charged customers.
B)the equilibrium "price" to be served by the DMV is higher than the "price" charged customers.
C)the equilibrium "price" to be served by the DMV minus the "price" charged to customers is zero.
D)b and c
E)none of the above

Accepted Answer

The correct answer is B because when the equilibrium price to be served by the DMV is higher than the price charged to customers, it indicates that the service is being provided at a lower cost than what it would be in a market with balanced supply and demand. This discrepancy leads to higher demand than the DMV can supply, resulting in long wait times and the perception of "too few" workers.

Question 10

Universities A and B are substitutes in the minds of many college students. Initially the student tuition at each university is the same and far below the equilibrium tuition. Then, the tuition at A is raised and B is not. As a result of a rising tuition at A, some students who would have applied and enrolled in A, apply to B instead. Based on the logic presented in one of the theories discussed in the textbook, we would expect that
A)instructors at B will begin to be less nearly punctual for office hours than they were previously.
B)instructors at A will begin to be more nearly punctual for office hours than they were previously.
C)instructors at B will be more nearly punctual for office hours than they were previously.
D)a and b
E)b and c

Accepted Answer

The answer of Universities A and B are substitutes in...

Question 11

Smith sends her children to a private school on the other side of town. Tuition per student per year is $15,000. Jones sends her children to a public school on her side of town. Tuition per student per year is $0. Most people seem to think that the private school and public school are equivalent when it comes to educating students. According to a theory discussed in the textbook,
A)Smith lives in a more expensive home than Jones.
B)Jones lives in a more expensive home than Smith.
C)Smith and Jones live in homes that are priced the same.
D)Smith lives in a larger home than Jones.
E)none of the above

Accepted Answer

The information given about the schools and the tuition paid does not provide any indication of the relative cost or value of the homes that Smith and Jones live in, so none of the choices provided can be determined to be true.

Question 12

A theory predicts that the more a student studies, the higher his or her grades will be. This theory is
A)not falsifiable.
B)falsifiable.
C)too difficult a theory to test.
D)inconsistent with the fact that some students study less than other students, yet receive higher grades.
E)b and d

Accepted Answer

This theory is falsifiable because it makes a testable prediction. The prediction is that there is a positive relationship between the amount of time a student studies and his or her grades. This can be tested by collecting data on both the amount of time students study and their grades and analyzing the relationship between the two variables. The fact that some students study less but receive higher grades does not necessarily contradict the theory, as there may be other factors that contribute to their success, such as natural abilities or effective study strategies. Therefore, option D is not a valid reason to reject the theory.

Question 13

The bigger the shortage of a good or service, the ____________ the seller of the good or service will be to an individual customer _________. (We are assuming here that the shortage cannot, for legal reasons, be alleviated through a rise in price.)
A)more polite; without having sales adversely affected
B)ruder; without having sales adversely affect
C)more polite; even though sales will be adversely affected
D)ruder; even though sales will be adversely affected

Accepted Answer

The answer of The bigger the shortage of a good...

Question 14

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that
A)if the supply of openings at each university is the same, then the demand to attend university B must be higher than the demand to attend university A.
B)the supply of openings is necessarily larger at university A than B.
C)instructors at university B are likely to be more punctual for their office hours than instructors at university A.
D)instructors at university A are more likely to be punctual for their office hours than instructors at university B.
E)none of the above

Accepted Answer

The answer of The gap between the higher equilibrium tuition...

Question 15

Theory B predicts that everything that happens, happens for a reason - although we may not know what the reason is. This theory
A)can be refuted.
B)probably cannot be refuted.
C)is a good explanation for what happens.
D)is the kind of theory that scientists like to build because it can explain so much.

Accepted Answer

Theory B cannot be refuted because it allows for any event to be seen as having a reason, even if that reason is currently unknown. It is not necessarily a good explanation for what happens because it does not offer a specific cause for each event, but rather provides a framework for thinking about causality. It is not necessarily the kind of theory that scientists like to build because it may not lend itself to empirical testing or falsification.

Question 16

A person who lives in a good-climate city says, "It's expensive to live here, but at least the climate is free." In terms of a theory advanced in the textbook, this person has either forgotten or is unaware that
A)New York City is not a good-climate city and it is expensive to live there.In other words, not all good-climate cities are expensive and not all bad-climate cities are cheap.
B)part of the reason it's expensive to live in the city is because of the good climate.
C)good-climate cities have more outdoor entertainment entities and activities and therefore people have to pay higher taxes to support those entities and activities.
D)there is a sunshine tax in most of the country - the more hours of sunshine a day, the higher the tax.
E)none of the above

Accepted Answer

The person in this scenario is only acknowledging the benefits of living in a good-climate city without considering how the demand for such cities may drive up the cost of living. This is consistent with the economic theory of supply and demand, which suggests that goods and services that are in high demand will be priced accordingly. Therefore, the fact that the climate is a desirable feature of the city may be one of the factors contributing to the high cost of living.

Question 17

Suppose you go to a high school and identify groups of students sitting at different lunch tables. To you it appears that everyone on the football team sits at one table, everyone who gets really high grades sits at another table, everyone who is in the drama club sits at another table, and so on. This outcome could be
A)the result of everyone preferring to sit at a table with dissimilar students, but not want to be at a table if he or she is in a 30 percent minority or less.
B)because people naturally discriminate against (and make feel unwelcome) those people who are not like them.
C)because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch) according to certain key interests.
D)b and c
E)all of the above

Accepted Answer

The answer of Suppose you go to a high school...

Question 18

A theory predicts that all swans are white. A thousand people go out into the field and identify the color of the swans they see. Their results reveal that, of the 10,000 swans they saw, all were white. It follows that
A)the swan theory is a falsifiable theory.
B)the swan theory is correct.
C)the evidence fails to reject the swan theory.
D)a and b
E)a and c

Accepted Answer

The answer of A theory predicts that all swans are...

Question 19

People sometimes act differently in different settings. An economist is likely to explain this by saying
A)the benefits and costs of certain behaviors can be different in different settings.
B)people are hard to figure out.
C)people behave as others behave.
D)it is hard to figure out what makes people tick.
E)none of the above

Accepted Answer

Economists often analyze behavior in terms of costs and benefits. Different settings may have different costs and benefits associated with certain behaviors, resulting in different behavior from individuals.

Question 20

Theory A predicts that the higher the opportunity cost of having a child, the fewer children a woman will have. Which of the following is evidence against the theory if opportunity cost is measured in terms of foregone salary?
A)women with high-paying jobs have more children than women with low-paying jobs.
B)women with low-paying jobs have more children than women with high-paying jobs.
C)men married to women with high-paying jobs want more children than men married to women with low-paying jobs.
D)the mothers of women with high-paying jobs will want their daughters to have children more than the mothers of women with low-paying jobs will want their daughters to have children.
E)none of the above

Accepted Answer

A) contradicts the theory by showing that women with higher opportunity costs (foregone salary from high-paying jobs) have more children, which is the opposite of what Theory A predicts.

Quiz 32: Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

Which of the following is not a prediction of the theory on baseball caps and cheating?

Suppose that the marginal benefits of giving a gift are greater than the marginal costs of giving a gift. Is the efficient number of gifts being given? If not, what should the gift giver do to move toward the efficient number of gifts being given.

A gift-giver's efficient number of gifts (to give to a gift-recipient) has fallen from 10 to 8. This could be because

The instructors at College A are regularly late for their office hours. Based on a theory presented in the textbook, we would predict that the gap between the ________student tuition and _equilibrium tuition is _______ at College A.

A man moves from a large city to a small town. In the small town he seems like a very different person than the person he was in the big city. For instance, he is more polite in the small town than he was in the big city. This could be because

Which of the following is not a prediction of the theory on baseball caps and cheating?

Which of the following is inconsistent with the burglary crime model presented in the textbook?

It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV) to service all of its customers at a given point in time. Based on one of theories discussed in the textbook, this is probably because

A theory predicts that the more a student studies, the higher his or her grades will be. This theory is

The bigger the shortage of a good or service, the ____ the seller of the good or service will be to an individual customer _. (We are assuming here that the shortage cannot, for legal reasons, be alleviated through a rise in price.)

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that

Theory B predicts that everything that happens, happens for a reason - although we may not know what the reason is. This theory

A person who lives in a good-climate city says, "It's expensive to live here, but at least the climate is free." In terms of a theory advanced in the textbook, this person has either forgotten or is unaware that

A theory predicts that all swans are white. A thousand people go out into the field and identify the color of the swans they see. Their results reveal that, of the 10,000 swans they saw, all were white. It follows that

People sometimes act differently in different settings. An economist is likely to explain this by saying

Theory A predicts that the higher the opportunity cost of having a child, the fewer children a woman will have. Which of the following is evidence against the theory if opportunity cost is measured in terms of foregone salary?