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Chapter 2
Thinking Like An Economist
TRUE/FALSE
1. Economists try to address their subject with a scientist’s objectivity.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economists MSC: Definitional
2. Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their
theories.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economists MSC: Definitional
3. The scientific method is the dispassionate development and testing of theories about how the world works.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Scientific method MSC: Definitional
4. The scientific method can be applied to the study of economics.
ANS: T DIF: 2 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Scientific method MSC: Interpretive
5. While the scientific method is applicable to studying natural sciences, it is not applicable to studying a
nation’s economy.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Scientific method MSC: Interpretive
6. For economists, conducting experiments is often difficult and sometimes impossible.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economists MSC: Definitional
7. Economists usually have to make do with whatever data the world happens to give them.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economists MSC: Definitional
8. It is difficult for economists to make observations and develop theories, but it is easy for economists to run
experiments to generate data to test their theories.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economists MSC: Interpretive
49
As to the discipline our minds receive from the perusal of fictions, I can
conceive none that is beneficial but may be attained by that of history. It is
the merit of fictions to come within the orbit of
probability: if unnatural they would no longer please. If Her narrow views
of fiction at this
it be said the mind must have relaxation, “Truth is period.
strange—stranger than fiction.” When a person has
exhausted the wonders of truth there is no other resort than fiction: till then,
I cannot imagine how the adventures of some phantom conjured up by
fancy can be more entertaining than the transactions of real specimens of
human nature, from which we may safely draw inferences.
M A E : Letter to Miss Lewis, 1839, in ‘George Eliot’s Life.’
If I live five years longer the positive result of my existence on the side
of truth and goodness will out-weigh the small negative good that would
have consisted in my not doing anything to shock others, and I can conceive
no consequences that will make me repent the past. Do not misunderstand
me, and suppose that I think myself heroic or great in any way. Far enough
from that! Faulty, miserably faulty I am—but least of all faulty where others
most blame.
M E [L ]: Letter to Miss Sara Hennell, 1857, in ‘George
Eliot’s Life.’