Test Bank for Principles of Macroeconomics, 14th Edition by Karl E. Case

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Principles of Macroeconomics, 14e (Case/Fair/Oster)
Chapter 21 Critical Thinking about Research Complete Chapters Included
Chap 1 to 21 ✅
21.1 Selection Bias

1) When collecting data to conduct research, if the sample used is not random, ________ occurs.
A) selection bias
B) survivor bias
C) regression discontinuity
D) difference-in-differences
Answer: A
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

2) When collecting data to conduct research, if the sample used includes only observations which have
remained in the sample over time, making that sample unrepresentative of the broader population,
________ occurs.
A) intention to treat
B) survivor bias
C) regression discontinuity
D) difference-in-differences
Answer: B
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

3) Which of the following examples would most likely be subject to selection bias?
A) 1,000 registered voters in Nashville are called and asked who they are planning to vote for in the
upcoming Nashville mayoral election.
B) 500 University of Wisconsin students are polled on their opinion about a possible tuition hike at their
school.
C) 750 National Rifle Association members are questioned to obtain the public's opinion about pending
federal legislation regarding stricter gun control laws.
D) 60 members of a 100-member neighborhood homeowners' association vote to approve funding for
private security patrols in their neighborhood.
Answer: C
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17




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,4) Which of the following examples would most likely be subject to selection bias?
A) a study that randomly sampled 100 passengers at Chicago O'Hare International Airport to get their
opinions about decreased legroom on commercial airplanes
B) a study that randomly sampled 100 hunters in Minnesota to determine if newly implemented state
hunting limits would reduce the number of hunting trips they took in the state each year
C) a study that randomly sampled 100 tourists of legal drinking age on the Las Vegas Strip to determine
the average amount they spend each day on alcoholic beverages while in Las Vegas
D) a study that randomly sampled 100 people issued speeding tickets on the New Jersey Turnpike to
determine if drivers believe the New Jersey Department of Transportation should raise the current 65
mph speed limit to 75 mph
Answer: D
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

5) Which of the following examples would most likely be subject to survivor bias?
A) a study that randomly sampled an equal number of 40-year old men and 60-year old men to measure
incidences of Type 1 diabetes
B) a study that randomly sampled flood victims whose homes were destroyed to see if they were likely to
rebuild their homes on the same property
C) a study that randomly sampled first-year law-school students to see how many survived to make it to
their second year in law school
D) a study that randomly sampled men and women who suffered food poisoning from dining at a
specific fast-food restaurant chain to determine the incidence of continued patronage of that particular
chain of restaurants
Answer: A
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

6) When conducting a study on success rates, which of the following would most likely be subject to
survivor bias?
A) Of the 4 Starbucks locations that opened exactly 5 years ago in the same city, the location next to the
concert arena has been the most financially successful.
B) Of the 75 oil exploration firms based in North Dakota, over half of those that recently filed for
bankruptcy have been in business for 5 years or less.
C) Of the 25 high schools located in Concordia County, this year's SAT scores were highest from students
who attend Springdale High, the newest high school in the county.
D) Of the 115 oceanfront hotels in Honolulu, only those with private beaches are able to charge more than
$200 per night on average.
Answer: B
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17


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,Refer to the information provided in Scenario 21.1 below to answer the question(s) that follow.

SCENARIO 21.1: A study of 2,500 country club members in Phoenix found that those who play golf at
least 2 times per week were 40 percent more likely to have suffered from skin cancer than those who
never play golf. Therefore, the study concluded that in Phoenix, playing golf at least twice a week leads to
a higher incidence of skin cancer in country club members.

7) Refer to Scenario 21.1. Which of the following statements pertaining to the scenario is the most accurate
with respect to selection bias?
A) The conclusion exhibits selection bias in that only country club members in Phoenix were surveyed.
B) The conclusion exhibits selection bias in that there may be other factors besides playing golf more than
2 times per week that lead to a higher incidence of skin cancer in those members.
C) The study exhibits selection bias in that it is only concerned with skin cancer incidence in country club
members.
D) The scenario does not exhibit selection bias.
Answer: B
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

Refer to the information provided in Scenario 21.2 below to answer the question(s) that follow.

SCENARIO 21.2: A survey of 1,000 people in Austin, Texas (population 900,000) found that those who
have chosen to eat organic produce for at least the past 5 years have experienced fewer serious medical
issues than those who have not elected to eat organic produce. Therefore, the conclusion was made that
eating organic produce helps prevent people from experiencing serious medical problems.

8) Refer to Scenario 21.2. Which of the following statements pertaining to the scenario is the most accurate
with respect to selection bias?
A) The survey exhibits selection bias in that only 1,000 people were surveyed in a city with a population
of 900,000.
B) The survey exhibits selection bias in that the 5-year time frame used to gauge serious medical issues is
not long enough.
C) The conclusion exhibits selection bias in that there may be other factors, such as those who eat organic
produce also exercise on a more regular basis, that could account for fewer serious medical problems.
D) All of the above are correct.
Answer: C
Diff: 2
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17




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, 9) Selection bias can result from data samples
A) that are not random.
B) that compare groups engaged in different activities.
C) from people who make different choices.
D) all of the above.
Answer: D
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

10) Survivor bias
A) is a type of selection bias.
B) can only occur in studies involving people of significant age difference.
C) is relatively insignificant with respect to economic research.
D) all of the above
Answer: A
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

11) In a research project, when the sample used is not random, selection bias occurs.
Answer: TRUE
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

12) Selection bias can distort the results of research studies.
Answer: TRUE
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17

13) Selection bias is unique to the field of economic research.
Answer: FALSE
Diff: 1
Topic: Selection Bias
Status: 13e question
Learning Outcome: Macro-17




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