Experimental Methods in Economics

Description: This quiz aims to assess your understanding of the various experimental methods used in economics.
Number of Questions: 16
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Tags: experimental economics experimental methods behavioral economics game theory
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Which of the following is NOT an experimental method commonly used in economics?

  1. Laboratory Experiments

  2. Field Experiments

  3. Natural Experiments

  4. Econometric Models


Correct Option: D
Explanation:

Econometric models are not considered an experimental method in economics. They are statistical techniques used to analyze economic data and make inferences about economic relationships.

In a laboratory experiment, participants are typically recruited from:

  1. The general population

  2. A specific population of interest

  3. University students

  4. All of the above


Correct Option: D
Explanation:

Participants in laboratory experiments can be recruited from the general population, a specific population of interest, or university students, depending on the research question and the resources available.

Field experiments are conducted:

  1. In a laboratory setting

  2. In a natural setting

  3. Both in a laboratory and a natural setting

  4. None of the above


Correct Option: B
Explanation:

Field experiments are conducted in a natural setting, where participants are observed in their everyday lives.

Natural experiments occur when:

  1. Researchers manipulate the independent variable

  2. Researchers observe a naturally occurring change in the independent variable

  3. Participants are randomly assigned to different treatments

  4. None of the above


Correct Option: B
Explanation:

Natural experiments occur when researchers observe a naturally occurring change in the independent variable and then study the effects of this change on the dependent variable.

Which of the following is NOT a common type of experimental design used in economics?

  1. Between-subjects design

  2. Within-subjects design

  3. Factorial design

  4. Randomized controlled trial


Correct Option: D
Explanation:

Randomized controlled trials are not typically used in economics, as they are more common in medical research.

In a between-subjects design, participants are:

  1. Randomly assigned to different treatments

  2. Observed in their everyday lives

  3. Matched on relevant characteristics

  4. All of the above


Correct Option: A
Explanation:

In a between-subjects design, participants are randomly assigned to different treatments, so that the effects of the treatments can be compared.

In a within-subjects design, participants:

  1. Receive all of the treatments

  2. Are observed in their everyday lives

  3. Are matched on relevant characteristics

  4. None of the above


Correct Option: A
Explanation:

In a within-subjects design, participants receive all of the treatments, so that the effects of the treatments can be compared within each participant.

A factorial design is used to:

  1. Study the effects of multiple independent variables

  2. Study the effects of a single independent variable

  3. Compare the effects of different treatments

  4. All of the above


Correct Option: A
Explanation:

A factorial design is used to study the effects of multiple independent variables on a single dependent variable.

Which of the following is NOT a common method for measuring economic outcomes in experiments?

  1. Surveys

  2. Experiments

  3. Observational data

  4. Administrative data


Correct Option: B
Explanation:

Experiments are not a method for measuring economic outcomes, but rather a method for studying the effects of different treatments on economic outcomes.

Surveys are commonly used in experiments to:

  1. Collect data on participants' preferences

  2. Collect data on participants' behavior

  3. Collect data on participants' demographics

  4. All of the above


Correct Option: D
Explanation:

Surveys are commonly used in experiments to collect data on participants' preferences, behavior, and demographics.

Observational data is collected:

  1. In a laboratory setting

  2. In a natural setting

  3. Both in a laboratory and a natural setting

  4. None of the above


Correct Option: B
Explanation:

Observational data is collected in a natural setting, where participants are observed in their everyday lives.

Administrative data is collected:

  1. By government agencies

  2. By businesses

  3. By researchers

  4. All of the above


Correct Option: D
Explanation:

Administrative data can be collected by government agencies, businesses, and researchers.

Which of the following is NOT a common type of experimental control group?

  1. No-treatment control group

  2. Placebo control group

  3. Active control group

  4. Matched control group


Correct Option: D
Explanation:

Matched control groups are not typically used in experiments, as they are more common in observational studies.

A no-treatment control group is used to:

  1. Compare the effects of a treatment to the effects of no treatment

  2. Compare the effects of a treatment to the effects of a placebo

  3. Compare the effects of a treatment to the effects of another treatment

  4. None of the above


Correct Option: A
Explanation:

A no-treatment control group is used to compare the effects of a treatment to the effects of no treatment.

A placebo control group is used to:

  1. Compare the effects of a treatment to the effects of no treatment

  2. Compare the effects of a treatment to the effects of a placebo

  3. Compare the effects of a treatment to the effects of another treatment

  4. None of the above


Correct Option: B
Explanation:

A placebo control group is used to compare the effects of a treatment to the effects of a placebo.

An active control group is used to:

  1. Compare the effects of a treatment to the effects of no treatment

  2. Compare the effects of a treatment to the effects of a placebo

  3. Compare the effects of a treatment to the effects of another treatment

  4. None of the above


Correct Option: C
Explanation:

An active control group is used to compare the effects of a treatment to the effects of another treatment.

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