Question : 41) Economics scientific because A) economists routinely conduct controlled experiments. B) individual : 1384130

41) Economics is scientific because

A) economists routinely conduct controlled experiments.

B) individual behaviour is predictable.

C) economists routinely conduct laboratory experiments.

D) economists use data.

E) economists test hypotheses by appealing to empirical evidence.

42) Which of the following statements is NOT correct?

A) Economists test their theories by confronting the predictions of their theories with the evidence drawn from the real world.

B) An economic model can be useful even if its underlying assumptions are unrealistic.

C) Normative statements cannot be tested by the scientific method.

D) Positive statements can best be tested by exposing them to empirical evidence.

E) Economic predictions cannot be tested because human decisions involve free will.

43) Economic theories

A) cannot be tested because we cannot do economic “experiments.”

B) must apply to all economies to be true.

C) can be used to help explain and predict economic behaviour.

D) are not useful because of the unrealistic assumptions they contain.

E) cannot help to predict future behaviour.

44) Using the scientific method to approach an economic issue involves

A) formulating normative statements about it.

B) finding the correct data to validate the theory.

C) the use of controlled experiments to confirm the evidence presented by the data.

D) considering stock and flow variables.

E) building a theory to explain the issue and then determining if the theory can be refuted by evidence.

45) In order to test a theory, one must

A) develop a better explanation than the one presented.

B) present a series of normative statements and positive statements.

C) use assumptions that most closely reflect reality.

D) develop normative statements from the law of large numbers.

E) confront the predictions of the theory with evidence.

46) An economic hypothesis will be rejected when

A) one or more of the assumptions on which it is based fails to conform with reality.

B) it is rejected by a single empirical observation.

C) the probability that it is wrong, based on repeated empirical observations, is judged to be unacceptably high.

D) a single empirical observation is encountered in which its predictions fail.

E) the possibility of error has been completely eliminated.

47) Suppose that a particular theory predicts that on Monday, Wednesday, and Friday the stock market will rise and that on Tuesday and Thursday the stock market will fall. If an economist tests this theory and finds that over a six-month period the theory predicts accurately, the economist would likely say that the theory

A) has been proven correct.

B) is reliable.

C) is not rejected by the evidence.

D) shouldn’t be taken seriously.

E) is not useful because stock markets involve irrational human behaviour.

48) If a theory’s prediction is tested and rejected,

A) the original data and assumptions should be discarded.

B) it is rejected with certainty, because it is not possible to reject a hypothesis that is actually true.

C) the statistical tolerance of risk for accepting a false hypothesis should be increased.

D) inquiry into the matter should cease.

E) a new hypothesis is usually suggested and tested.

49) As a science, economics is disadvantaged in that

A) it deals with human behaviour and thus is not open to empirical testing.

B) it is usually not possible to conduct controlled experiments in economics, in contrast with certain other sciences.

C) economic hypotheses cannot be accepted with complete certainty, by contrast with the other sciences.

D) economic variables do not change enough to provide reliable data for testing hypotheses.

E) some economic variables are determined within the theory.

50) Most economists believe that economic analysis ________ be made completely free of judgement, in part because it is ________ to absolutely refute a theory on the basis of factual evidence.

A) can; possible

B) can; impossible

C) cannot; possible

D) cannot; impossible

E) will; necessary