An economist conducts a "natural experiment" by
A) choosing two groups of people — a control group and a test group — and providing special treatment for the test group.
B) using animal behavior to make inferences about human behavior.
C) using his or her own intuition to surmise what people will do in a given situation.
D) polling other economists to see if they believe a theory.
E) taking real-world data as it is given, and using it to test a theory.
E
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What is the biggest reason for the pay gap among racial groups?
a. legal discrimination in favor of Asians and Caucasians b. systemic discrimination against Latinos and African-Americans c. higher educational achievement of Asians and Caucasians d. differences in job choices between the different racial groups
Is your economics textbook a public or private good? If you conclude that it is a private good, why do we have copyright laws?
Which of the following statements is true about bonds?
A) Sellers of newly issued bonds are borrowers. B) When the government and large corporations want to borrow money they buy bonds. C) A bond owner must hold a bond until it matures. D) The interest rate on a bond is directly related to its price.
As applied to voter behavior, the "rational ignorance" hypothesis claims
A) voters will have no incentive to be informed of political issues. B) voters will stop gathering information once the marginal costs exceed the marginal benefits. C) voters only vote on the basis of their instinctual or gut feelings. D) voters are selfish.