ECON Midterm Pre-Test Exam Questions.

ECON Midterm Pre-Test Exam Questions. The scientific method is use of modern technology to understand the way the world works. use of controlled laboratory experiments to understand the way the world works. dispassionate development and testing of theories about how the world works. search for evidence to support preconceived theories about how the world work - CORRECT ANSWER C.the dispassionate development and testing of theories about how the world works. The goal of an economist who formulates new theories is to de an interesting framework of analysis, whether or not the framework turns out to be of muchuse in understanding how the world works. ke stimulating debate in scientific journals. ibute to an understanding of how the world works. strate that economists, like other scientists, can formulate testable theories. - CORRECT ANSWER C.contribute to an understanding of how the world works. One thing economists do to help them understand how the real world works is assumptions. e the past. try to capture every aspect of the real world in the models they construct. d.All of the above are correct. - CORRECT ANSWER A. make assumptions. A model can be accurately described as a etical abstraction with very little value. e that is useful only to the people who created it. stic and carefully constructed theory. ification of reality - CORRECT ANSWER D.simplification of reality Which of the following statements about models is correct? a.The more details a model includes, the better the model. b.Models assume away irrelevant details. c.Models cannot be used to explain how the economy functions. d.Models cannot be used to make predictions - CORRECT ANSWER B.Models assume away irrelevant details. In building economic models, economists often omit ptions. ies. ls. ions. - CORRECT ANSWER ls. Which of the following statements about economic models is correct? a.Economic models are built to mirror reality exactly. b.Economic models are useful, but they should not be used for the purpose of improving public policies. c.Because economic models omit many details, they allow us to see what is truly important. d.Economic models seldom incorporate equations or diagrams - CORRECT ANSWER c.Because economic models omit many details, they allow us to see what is truly important. Which of the following is not correct about most economic models? a.They are composed of equations and diagrams. b.They contribute very little to economists' understanding of the real world. c.They omit many features of the real-world economy. d.In constructing models, economists make assumptions. - CORRECT ANSWER b.They contribute very little to economists' understanding of the real world.