TEST BANK FOR PRINCIPLES OF MACROECONOMICS 7TH EDITION BY GREGORY MANKIW

TEST BANK FOR PRINCIPLES OF MACROECONOMICS 7TH EDITION BY GREGORY MANKIW Thinking Like an Economist Multiple Choice – Section 00: Introduction 1. Which of the following is not correct? a. Economists use some familiar words in specialized ways. b. Economics has its own language and its own way of thinking, but few other fields of study do. c. Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are allterms that are part of the economist’s language. d. The value of the economist’s language lies in its ability to provide you with a new and useful wayofthinking about the world in which you live. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.5 - LO: 2-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension 2. Economists use some familiar terms in specialized ways a. to make the subject sound more complex than it is. b. because every respectable field of study has its own language. c. to provide a new and useful way of thinking about the world. d. because it was too difficult to come up with new terms. ANSWER: cPOINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.5 - LO: 2-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension204Thinking Like an Economist Thinking Like an Economist204 3. The language of economics is a. needlessly arcane. b. valuable because it provides a new and useful way of learning about the world. c. easy to learn within a day. d. unnecessary to learn for a thorough understanding of economics. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.5 - LO: 2-0 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension Multiple Choice – Section 01: The Economist as Scientist 1.Economists, like mathematicians, physicists, and biologists, a. make use of the scientific method. to address their subject with a scientist’s objectivity. e theories, collect data, and then analyze these data in an attempt to verify or refutetheirtheories. d.All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension205Thinking Like an Economist Thinking Like an Economist204 2. The essence of science is a. the laboratory experiment. b. the scientific method. c. the study of nature, but not the study of society. d. All of the above are correct. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge 3. The scientific method is a. the use of modern technology to understand the way the world works. b. the use of controlled laboratory experiments to understand the way the world works. c. the dispassionate development and testing of theories about how the world works. d. the search for evidence to support preconceived theories about how the world works. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge206Thinking Like an Economist Thinking Like an Economist204 4. The scientific method is applicable to studying a. natural sciences, but not social sciences. b. social sciences, but not natural sciences. c. both natural sciences and social sciences. d. None of the above is correct. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension 5. Who said, "The whole of science is nothing more than the refinement of everyday thinking"? a. Isaac Newton b. Albert Einstein c. Adam Smith d. Benjamin Franklin ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge207Thinking Like an Economist Thinking Like an Economist204 6. Albert Einstein once made the following observation about science: a. "The whole of science is nothing more than the refinement of everyday thinking." b. "The whole of science is nothing more than an interesting intellectual exercise." c. "In order to understand science, one must rely solely on abstraction." d. "In order to understand science, one must transcend everyday thinking." ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Knowledge 7. Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree isan example of a. a controlled experiment that lead to the formulation of a scientific theory. b. being in the right place at the right time. c. an idea whose time had come. d. the interplay between observation and theory in science. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension208Thinking Like an Economist Thinking Like an Economist204 8. Which of the following steps does an economist take when studying the economy? a. devise theories b. collect data c. analyze data d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension 9. Which of the following is an example of using the scientific method with a natural experiment? a. measuring how long it takes a marble to fall from a ten story building b. comparing plant growth with and without a soil additive c. tracking the price of oil when a war in the Middle East interrupts the flow of crude oil d. observing the reaction when two chemicals are mixed together ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Application NOTES: s209Thinking Like an Economist Thinking Like an Economist204 10. The goal of an economist who formulates new theories is to a. provide an interesting framework of analysis, whether or not the framework turns out to be ofmuch use in understanding how the world works. b. provoke stimulating debate in scientific journals. c. contribute to an understanding of how the world works. d. demonstrate that economists, like other scientists, can formulate testable theories. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension 11. Suppose an economist develops a theory that higher food prices arise from higher gas prices.According to the scientific method, which of the following is the economist’s next step? a. Collect and analyze data. b. Go to a laboratory and generate data to test the theory. c. Publish the theory without testing it. d. Consult with other economists to see they agree with the theory. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Easy LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Application210Thinking Like an Economist Thinking Like an Economist204 12. Which of the following statements applies to economics, as well as to other sciences such asphysics? a. Experiments are considered valid only when they are conducted in a laboratory. b. Good theories do not need to be tested. c. Real-world observations often lead to theories. d. Economics, as well as other sciences, is concerned primarily with abstract concepts. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension 13. With respect to how economists study the economy, which of the following statements is mostaccurate? a. Economists study the past, but they do not try to predict the future. b. Economists use “rules of thumb” to predict the future. c. Economists devise theories, collect data, and analyze the data to test the theories. d. Economists use controlled experiments in much the same way that biologists and physicists do. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist KEYWORDS: BLOOM'S: Comprehension211Thinking Like an Economist Thinking Like an Economist204 14. Economists face an obstacle that many other scientists do not face. What is that obstacle? a. It is often difficult to formulate theories in economics. b. It is often impractical to perform experiments in economics. c. Economics cannot be addressed objectively; it must be addressed subjectively. d. The scientific method cannot be applied to the study of economics. ANSWER: b POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension NOTES: s 15. In conducting their research, economists face an obstacle that not all scientists face; specifically,in economics, it is often impractical to a. make use of theory and observation. b. rely upon the scientific method. c. conduct laboratory experiments. d. find articles or books that were written before 1900. ANSWER: c POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension NOTES: s212Thinking Like an Economist Thinking Like an Economist204 16. The use of theory and observation is more difficult in economics than in sciences such as physicsdue to the difficulty in a. performing an experiment in an economic system. b. applying mathematical methods to economic analysis. c. analyzing available data. d. formulating theories about economic events. ANSWER: a POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension 17. Which of the following statements is (are) correct? a. Relative to some other scientists, economists find it more difficult to conduct experiments. b. Theory and observation are important in economics as well as in other sciences. c. To obtain data, economists often rely upon the natural experiments offered by history. d. All of the above are correct. ANSWER: d POINTS: 1 DIFFICULTY: Difficulty: Moderate LEARNING OBJECTIVES: ECON.MANK.15.6 - LO: 2-1 NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: General Principles KEYWORDS: BLOOM'S: Comprehension