Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
Economists use models because:
A)some things in the real world are irrelevant.
B)they allow us to concentrate on essentials.
C)the real world is far too complex to analyze effectively.
D)all of the above.
2
A sequence of measurements at different points in time is known as:
A)frequency interval data.
B)time-series data.
C)cross-section data.
D)longitudinal data.
3
A record of the behaviour of economic variables across different individuals at a point in time is known as:
A)frequency interval data.
B)time-series data.
C)cross-section data.
D)longitudinal data.
4
A record of the behaviour of the same individual over an extended period of time is known as:
A)frequency interval data.
B)time-series data.
C)cross-section data.
D)longitudinal data.
5
The price of cigarettes in March 2004 was $69.43 per carton and $76.21 in March If March 2004 is chosen as the base, what would the cigarette index be in March 2005?
A)109.76
B)9.76
C)6.78
D)106.78
6
The inflation rate is:
A)a measure of the growth of the economy.
B)the percentage decrease in the consumer price index.
C)the absolute change in the consumer price index.
D)the percentage increase in the consumer price index.
7
A real price index:
A)measures year-to-year price changes of real estate.
B)is an indicator of relative price changes.
C)measures the absolute change in commodity prices.
D)is an indicator of the dollar price of commodities.
8
If the CPI had a value of 123.2 in one time period and a value of 121.8 a year later, we could conclude that the economy experienced a period of:
A)inflation
B)disinflation
C)deflation
D)recession
9
A series of points, each one defining a pair of corresponding values is known as:
A)a histogram.
B)a regression line.
C)a scatter diagram.
D)econometric analysis.
10
The science of examining and quantifying relationships between economic variables is known as:
A)statistics
B)econometrics
C)forecasting
D)voodoo
11
Economists will often reject a theory when:
A)collected data is not compatible with the theory.
B)data to test the theory cannot be collected.
C)a different theory is proposed.
D)the theory becomes a law.
12
Which of the following is not is criticism of economics and economists?
A)Models in economics are too simple to be considered realistic.
B)Economics only applies to market economies.
C)People are not as mercenary as economists portray them.
D)No two economists ever agree.
13
One reason that economists don’t always agree may be:
A)that they are using different data to test their theories.
B)that they do not agree on the underlying theories being tested.
C)that they share different normative values.
D)all of the above.
14
Economics has been criticized for using models that are too simplistic to be considered realistic. The reason for using simplistic models is:
A)the mathematics of more complex models is too sophisticated to solve.
B)economists rarely deal with reality.
C)models are a deliberate distortion from reality to concentrate on particular observed behaviour.
D)using complex models may not yield the result that the economist is trying to prove.
15
Economics has been criticized for assuming that human actions can be reduced to scientific laws. The counter-argument is that:
A)individuals are subject to the laws of physics just like all particles.
B)economics only requires that individuals behave rationally on average.
C)individuals that break the scientific laws are subject to fines and imprisonment.
D)economics deals with markets, not individuals.





To learn more about the book this website supports, please visit its Information Center.
(c)2007 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


MicroeconomicsOnline Learning Center

Home > Chapter 2 > Multiple Choice Quiz