Econ 111 - Chapter 2: Thinking Like an
Economist well answered to pass
2025/2026
An economist has two roles. The first role as a _______, tries to explain how the real world
______. The second role as a ______ ______ provides advice on how to ______ the economy. -
correct answer ✔✔Scientist.
Functions.
Policy Advisor.
Improve.
Scientific Method
What are the three main components when utilizing the scientific method? - correct answer
✔✔Observations, developing a model/theory, testing.
(The scientific method uses observations and develops a theory/model to understand how the
real world works)
Scientific Method
What type of relationship does this theory/model use? - correct answer ✔✔Cause and effect
relationship.
Scientific Method
Example of cause and effect:
If the cost of coffee goes up the quantity demand goes down. What are the dependent and
independent variables? - correct answer ✔✔Dependent variable - Quantity demanded because
it depends on the price.
, Independent variable - price of coffee.
(independent variables are what we manipulate and dependent variables are what we measure)
Scientific Method
Define quantity demanded. - correct answer ✔✔is the amount of a product, how much a
consumer is willing to buy.
Scientific Method
When testing the prediction and it is consistent with a real world observation we can ______ it.
If not, we can _____ it or ______ it so that it is consistent. - correct answer ✔✔Accept.
Reject or modify.
Assumptions and Model
What does ceteris paribus mean? - correct answer ✔✔Other things being equal.
Assumptions and Model
Explain the other things equal assumption. - correct answer ✔✔we assume that all other
factors stay the same. The coffee example, is we assume everything stays the same and when
the price goes up the demand.... (decreases??? I think the note is not finished here)
Assumptions and Model
The Law of Demand explains as price goes up people will consume ______. - correct answer
✔✔Less.
Two models
What is the Circular-Flow Diagram? - correct answer ✔✔a visual model of the economy that
shows how dollars flow through markets among households and firms.
Economist well answered to pass
2025/2026
An economist has two roles. The first role as a _______, tries to explain how the real world
______. The second role as a ______ ______ provides advice on how to ______ the economy. -
correct answer ✔✔Scientist.
Functions.
Policy Advisor.
Improve.
Scientific Method
What are the three main components when utilizing the scientific method? - correct answer
✔✔Observations, developing a model/theory, testing.
(The scientific method uses observations and develops a theory/model to understand how the
real world works)
Scientific Method
What type of relationship does this theory/model use? - correct answer ✔✔Cause and effect
relationship.
Scientific Method
Example of cause and effect:
If the cost of coffee goes up the quantity demand goes down. What are the dependent and
independent variables? - correct answer ✔✔Dependent variable - Quantity demanded because
it depends on the price.
, Independent variable - price of coffee.
(independent variables are what we manipulate and dependent variables are what we measure)
Scientific Method
Define quantity demanded. - correct answer ✔✔is the amount of a product, how much a
consumer is willing to buy.
Scientific Method
When testing the prediction and it is consistent with a real world observation we can ______ it.
If not, we can _____ it or ______ it so that it is consistent. - correct answer ✔✔Accept.
Reject or modify.
Assumptions and Model
What does ceteris paribus mean? - correct answer ✔✔Other things being equal.
Assumptions and Model
Explain the other things equal assumption. - correct answer ✔✔we assume that all other
factors stay the same. The coffee example, is we assume everything stays the same and when
the price goes up the demand.... (decreases??? I think the note is not finished here)
Assumptions and Model
The Law of Demand explains as price goes up people will consume ______. - correct answer
✔✔Less.
Two models
What is the Circular-Flow Diagram? - correct answer ✔✔a visual model of the economy that
shows how dollars flow through markets among households and firms.
