Question 1

Which of the following statements is true of the scientific method?
A) The scientific method may not reveal a "true" model of the world.
B) The scientific method does not require the models to be tested with data.
C) The scientific method used by economists and scientists is independent of empiricism.
D) The scientific method can help develop accurate models even when data are unavailable.

Accepted Answer

The scientific method involves developing hypotheses, testing them through observation and experimentation, and revising or accepting them based on the evidence gathered. However, there may be limitations to the data that is available or the accuracy of the models developed, which means that the scientific method cannot always guarantee a "true" model of the world.

Question 2

Which of the following is a feature of the scientific method?
A) The scientific method is not based on data, statistics, or measurements.
B) The scientific method allows improvisation and correction of inconsistent models.
C) The scientific method enables the creation of perfectly accurate models of the real world.
D) The scientific method is used only for studying topics related to economics.

Accepted Answer

The scientific method involves the continuous process of observation, measurement, and experimentation to test hypotheses and theories. It recognizes that knowledge is tentative and subject to change based on new evidence or flaws in previous findings. This allows for improvisation and correction of inconsistent models. Option A is incorrect because data, statistics, and measurements are fundamental components of the scientific method. Option C is incorrect because perfect accuracy is unattainable in scientific models due to the inherent complexity of reality. Option D is incorrect because the scientific method is used in various fields of study, not just economics.

Question 3

Which of the following statements is true?
A) Models that economists use are perfect replicas of reality.
B) The scientific method used by economists is based on idealism and not empiricism.
C) Models help economists explain the past but do not help predict the future.
D) Testing with data enables economists to distinguish between good models and bad models.

Accepted Answer

Testing with data is an essential part of the scientific method used by economists to distinguish between good and bad models. Option A is incorrect as models in economics are only simplifications of reality and not perfect replicas. Option B is also incorrect, as the scientific method used by economists is based on empirical evidence, not idealism. Option C is incorrect as models can also be used to make predictions about the future, although their accuracy may vary.

Question 4

What is meant by the term "scientific method?" What are the key components of the scientific method?

Accepted Answer

The answer of What is meant by the term "scientific...

Question 5

Economic models are often based on assumptions because they ________.
A) help explain the past
B) help simplify complex real-world phenomena
C) help predict the future with greater accuracy
D) help test models even when relevant data are unavailable

Accepted Answer

Economic models are complex and cannot fully capture all the details of the real world, so assumptions are used to simplify the models and make them more manageable. This allows economists to focus on the key factors that are driving the outcomes they are interested in.

Question 6

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent.
-Refer to the scenario above.The hypothesis of the model is that ________.
A) college graduates will earn about 80 percent more than high school graduates
B) college graduates will earn about 107 percent more than high school graduates
C) college graduates will earn about 200 percent more than high school graduates
D) college graduates will earn about 275 percent more than high school graduates

Accepted Answer

Based on the assumption that an additional year of education increases a student's future wage by 20 percent, college graduates (who typically have four more years of education than high school graduates) would earn about 80 percent more (4 times 20 percent) than high school graduates. Therefore, the best choice is B - college graduates will earn about 107 percent more (80 percent plus another 4 times 6 percent) than high school graduates.

Question 7

The scientific method refers to the process by which economists and other scientists ________.
A) collect data for further use in research
B) develop models of the world and test those models with data
C) develop models to explain the past but not to predict the future
D) plot graphs to illustrate relationships between different economic variables

Accepted Answer

The scientific method involves developing models of the world and testing those models with data. Economists and other scientists use this process to understand and predict behavior in their respective fields. A is too narrow of a definition, C is incorrect as economic models are often used for predictive purposes, and D only describes a tool used in the scientific method rather than the actual process.

Question 8

A model's predictions are referred to as ________.
A) statistics
B) theories
C) hypotheses
D) empirical evidence

Accepted Answer

Predictions made by models are referred to as hypotheses, which are tentative explanations for observed phenomena. Statistics are numerical summaries of data, theories are explanations that have been extensively tested and are widely accepted, and empirical evidence is data obtained through observation or experimentation.

Question 9

Which of the following statements correctly differentiates between a model and a hypothesis?
A) Testing a hypothesis does not require data, whereas testing a model requires data.
B) Testing a model requires data, whereas testing a hypothesis does not require data.
C) A hypothesis can be used to make predictions for the future, whereas a model can only explain the past.
D) A model is a simplified representation of reality, whereas hypotheses are a model's predictions.

Accepted Answer

A model is a simplified representation of reality, while a hypothesis is a proposed explanation or prediction for a phenomenon. Hypotheses are used to develop models, and models can be used to test and validate hypotheses. Therefore, D is the correct answer. A, B, and C are incorrect because they either incorrectly describe the requirements for testing a hypothesis or misrepresent the capabilities of models and hypotheses.

Question 10

Facts,measurements,or statistics that describe the world are referred to as ________.
A) data
B) models
C) hypothesis
D) empiricism

Accepted Answer

Facts, measurements, or statistics are considered as raw information or pieces of evidence that form the basis for any empirical study or research. Thus, they are called data. Models are theoretical frameworks or simplifications used to explore and explain phenomena, hypotheses are tentative explanations to be tested, and empiricism is a philosophical approach that emphasizes the importance of experience and observation in knowledge acquisition.

Question 11

Which of the following statements is true?
A) Theories are statistics that describe the real world.
B) Hypotheses are predictions that can be tested with data.
C) Data are facts established by observation and measurement.
D) Empirical evidence consists of facts, measurements, or statistics that describe the world.

Accepted Answer

A hypothesis is an educated guess or prediction that can be tested with data. Theories, on the other hand, are explanations or models that can be supported by data but are not the same as data themselves. Data are factual observations or measurements, and empirical evidence refers to any evidence that is based on data or observations, including facts, measurements, or statistics.

Question 12

Which of the following is a feature of models?
A) Models are the same as hypotheses.
B) Models help in making predictions for the future.
C) Models are more complicated than real life phenomena.
D) Models are as complex as the phenomenon being studied.

Accepted Answer

Models are created to help make predictions and understand complex phenomena. While they may not be as complex as the real-life phenomenon, they are still useful in making predictions and understanding relationships between variables. They are also not the same as hypotheses, as a hypothesis is a proposed explanation for a phenomenon, while a model is a representation of the phenomenon itself.

Question 13

A model refers to ________.
A) a perfect replica of reality
B) a simplified description, or representation, of reality
C) facts, measurements, or statistics that describe the world
D) a set of facts established by observation and measurement

Accepted Answer

A model is an abstraction or simplified representation of reality, which allows us to make predictions and understand complex systems. While a model may be based on facts, measurements, or statistics, it is not a perfect replica of reality (A) or a set of facts established by observation and measurement (D).

Question 14

Which of the following statements is true of models?
A) The predictions of a model are referred to as data.
B) A model is formulated after developing a hypothesis.
C) Models are always based on assumptions that are known to be true.
D) It is more important for a model to be simple and useful than to be precisely accurate.

Accepted Answer

While models are based on assumptions, they are not always known to be true. A model is formulated to test a hypothesis, but it is not necessarily developed after the hypothesis. The predictions of a model are not data, but rather are used to make predictions about data. It is often more important for a model to be simple and useful than for it to be precisely accurate, as a complex model may be difficult to use or understand.

Question 15

Which of the following statements is true about data?
A) Empiricism does not necessarily involve data.
B) Consistency of models can be checked using data.
C) Facts that describe the world are not considered data.
D) Convincing data analysis in economics relies on using a small sample.

Accepted Answer

Consistency of models can be evaluated based on their ability to explain empirical data.

Question 16

Why do almost all models begin with assumptions?

Accepted Answer

The answer of Why do almost all models begin with...

Question 17

Why are data essential components of the scientific method?

Accepted Answer

The answer of Why are data essential components of the...

Question 18

Empirical evidence refers to ________.
A) a simplified representation of reality
B) a proposed explanation for a phenomenon
C) the process of developing and testing models
D) a set of facts established by observation and measurement

Accepted Answer

Empirical evidence is the set of facts or data that has been established by observation and measurement. It is based on evidence that can be observed or tested through experimentation, and is used to support or refute theories or hypotheses. Choice A is a definition of a model, choice B is a definition of a hypothesis, and choice C is a description of the scientific method.

Question 19

A model ________.
A) is often based on simplifying assumptions that are not necessarily true
B) can be tested without data or statistics
C) is a more complex representation of reality than a theory
D) can never be used to predict the future, but it helps explain the past

Accepted Answer

Models are simplified versions of reality that make assumptions that are not necessarily true. These assumptions are made in order to simplify the system being modeled so that it can be understood and analyzed.

Question 20

Empiricism refers to using ________ to analyze the world.
A) data
B) beliefs
C) traditions
D) value judgments

Accepted Answer

Empiricism relies on collecting and analyzing data from observations and experiments. It emphasizes the importance of evidence and observation over beliefs, traditions, or value judgments.

Quiz 2: Economic Methods and Economic Questions

Which of the following statements is true of the scientific method?

Which of the following is a feature of the scientific method?

Which of the following statements is true?

What is meant by the term "scientific method?" What are the key components of the scientific method?

Economic models are often based on assumptions because they ________.

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent. -Refer to the scenario above.The hypothesis of the model is that ________.

The scientific method refers to the process by which economists and other scientists ________.

A model's predictions are referred to as ________.

Which of the following statements correctly differentiates between a model and a hypothesis?

Facts,measurements,or statistics that describe the world are referred to as ________.

Which of the following statements is true?

Which of the following is a feature of models?

A model refers to ________.

Which of the following statements is true of models?

Which of the following statements is true about data?

Why do almost all models begin with assumptions?

Why are data essential components of the scientific method?

Empirical evidence refers to ________.

A model ________.

Empiricism refers to using ________ to analyze the world.