31.Foraneconomist,theideaofmakingassumptionsisregardedgenerallyasa a.badidea,sincedoingsoleadstotheomissionofimportantideasandvariablesfromeconomicmodels. b.badidea,sincedoingsoinvariablyleadstodata-collectionproblems. c.goodidea,sincedoingsohelpstosimplifythecomplexworldandmakeiteasiertounderstand. d.goodidea,sinceeconomicanalysiswithoutassumptionsleadstocomplicatedresultsthatthegeneralpublicfindshardtounderstand. 32.Economistsmakeassumptionsto a.provideissuesforpoliticaldiscussion. b.makeacomplexworldeasiertounderstand. c.makeiteasiertoteacheconomicconceptsandanalysis. d.createpolicyalternativesthatareincompleteorsubjecttocriticism. 33.Acircular-flowmodelandproductionpossibilitiesfrontieraresimilarinthat a.neitherallowseconomicanalysistooccur. b.neithercanberepresentedvisuallyonagraph. c.bothmakeuseofassumptions. d.bothmakeuseofcomplexequationstoarriveatsolutions. 34.Aneconomictheoryaboutinternationaltradethatisbasedontheassumptionthatthereareonlytwocountriestradingtwogoods a.isuseless,sincetherealworldhasmanycountriestradingmanygoods. b.canbeusefulonlyinsituationsinvolvingtwocountriesandtwogoods. c.canbeusefulintheclassroom,butisuselessintherealworld. d.canbeusefulinhelpingeconomistsunderstandthecomplexworldofinternationaltradeinvolvingmanycountriesandmanygoods. 35.Theartinscientificthinking–whetherinchemistry,economics,orbiology–is a.thedesignandimplementationoflaboratoryexperiments. b.knowingwhentostopcollectingdataandwhentostartanalyzingthedata. c.decidingwhichassumptionstomake. d.beingabletomathematicallymodelnaturalphenomena. 36.Theartinscientificthinkingis a.findingtherightproblemtostudy. b.decidingwhichassumptionstomake. c.theabilitytomakeanabstractsubjecteasytounderstand. d.notsomethinginwhicheconomistshavetobeskilled. 37.Thedecisionofwhichassumptionstomakeis a.aneasydecisionforaneconomist,butadifficultdecisionforaphysicistorachemist. b.notaparticularlyimportantdecisionforaneconomist. c.usuallyregardedasanartinscientificthinking. d.usuallyregardedastheeasiestpartofthescientificmethod. 38.Anexampleofapricethatchangesonlyinfrequentlyisthepriceof a.stocksontheNewYorkStockExchange. b.crudeoil. c.residentialrealestate. d.magazinessoldatnewsstands. 39.Whenstudyingtheeffectsofpublicpolicychanges,economists a.alwaysrefrainfrommakingassumptions. b.sometimesmakedifferentassumptionsabouttheshortrunandthelongrun. c.consideronlythedirecteffectsofthosepolicychangesandnottheindirecteffects. d.consideronlytheshort-runeffectsofthosepolicychangesandnotthelong-runeffects. 40.Whenstudyingtheeffectsofchangesinpublicpolicy,economistsbelievethat a.itisimportanttodistinguishbetweentheshortrunandthelongrun. b.theassumptionsusedinstudyingthoseeffectsshouldbethesamefortheshortrunasforthelongrun. c.theshort-runeffectsofthosechangesarealwaysmorebeneficialtosocietythanarethelong-runeffects. d.thelong-runeffectsofthosechangesarealwaysmorebeneficialtosocietythanaretheshort-runeffects.