Question

1. Being sure that an economic variable measures exactly what we want it to measure is referred to as

1. Statistical reliability
2. Statistical validity
3. Statistical inference
4. Statistical description

2. The “economic problem” could best be described as

1. How households can maximize their benefit while firms maximize profit at the same time
2. How governments and central banks must implements ideal policies without making economic growth rates fall
3. How societies must allocate scarce resources among alternative uses and wants
4. How societies must allocate scarce resources in such a way as to achieve a fair distribution of income and consumption

3. Which of the following topics would least likely be covered in a course in macroeconomics?

1. The monetary policy choices of the Central Bank of Bahrain
2. The profit maximizing pricing strategy of ABC Corporation
3. The fiscal policy stimulus package options available to country policy makers to deal with weakness in the world economy
4. The level and causes of unemployment in the Czech Republic

Answer 1

First answer. (b) Statistical validity

Second answer. (c) How societies must allocate scarce resources among alternative uses and wants

Third answer. (b) The profit maximising pricing strategy of ABC corporation

Explanation of first: Statistical validity means that the estimator measures the variable quite accurately.

Explanation of second: The basic meaning of economics is using scarce resources for unlimited wants.

Explanation of third: This is not a national level activity, rather it is a microeconomic activity.

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