PUP test 2 Question and answers
correctly solved 2025/2026
The control group - correct answer ✔The group that is used as a baseline for an experiment and does
not receive the experimental manipulation is referred to as...
Confounding variables - correct answer ✔An experiment is unable to reveal a valid causal effect due to
a set of factors that are correlated with both the treatment is likely to result from...
An observational study - correct answer ✔A researcher gathers data on air pollution and rates of lung
disease in a number of communities. The researcher, then, attempts to draw a causal inference based
on the variation in air pollution and lung disease rates across the different communities. What type of
analysis is the researcher conducting?
Counterfactual - correct answer ✔If I had studied one more hour for my Public Policy exam, would I
have received a better grade? Asking oneself this question is an example of what concept?
Reveal whether two variables are associated - correct answer ✔A correlation can
Random Error - correct answer ✔__________ describes the probabilistic nature of events that are not
perfectly predictable.
One - correct answer ✔A probability ranges between zero and...
x1 - correct answer ✔In the regression equation, Y=B0+B1x1, what is the input variable of interest?
Standard deviation - correct answer ✔The __________ assesses the variation or dispersion of the data
around the center of the distribution.
, Y - correct answer ✔In the regression equation, Y=B0+B1x1, what is the output variable of interest?
The Federal Reserve Board - correct answer ✔In the United States, what is responsible for managing
the supply of money in the economy?
Fiscal Policy - correct answer ✔__________ has to do with taxing and spending
Player 1 receives $9 and player 2 receives $1 - correct answer ✔What is the Nash equilibrium of the
Ultimatum game where player 1 starts with $10 and player 2 starts with $0?
Economic Growth - correct answer ✔The increase in the market value of the goods and services
produced by an economy is...
An increase in employment - correct answer ✔Card and Kreuger (1994, 2000) studied the effects of
minimum wage on employment in the fast food industry. They found evidence that an increase to the
minimum wage resulted in...
Redistribution - correct answer ✔__________ involves taking from people who have more income and
giving to the people who do not have enough income.
Increase - correct answer ✔During a recession, Keynesian solution is for government spending to...
more - correct answer ✔Most people receive __________ in social security compared to the
contribution that they put in
more than - correct answer ✔Thousands of experimental studies have put to test the expectation of
the Ultimatum game and reveal that contributions are __________ the model predicts.
correctly solved 2025/2026
The control group - correct answer ✔The group that is used as a baseline for an experiment and does
not receive the experimental manipulation is referred to as...
Confounding variables - correct answer ✔An experiment is unable to reveal a valid causal effect due to
a set of factors that are correlated with both the treatment is likely to result from...
An observational study - correct answer ✔A researcher gathers data on air pollution and rates of lung
disease in a number of communities. The researcher, then, attempts to draw a causal inference based
on the variation in air pollution and lung disease rates across the different communities. What type of
analysis is the researcher conducting?
Counterfactual - correct answer ✔If I had studied one more hour for my Public Policy exam, would I
have received a better grade? Asking oneself this question is an example of what concept?
Reveal whether two variables are associated - correct answer ✔A correlation can
Random Error - correct answer ✔__________ describes the probabilistic nature of events that are not
perfectly predictable.
One - correct answer ✔A probability ranges between zero and...
x1 - correct answer ✔In the regression equation, Y=B0+B1x1, what is the input variable of interest?
Standard deviation - correct answer ✔The __________ assesses the variation or dispersion of the data
around the center of the distribution.
, Y - correct answer ✔In the regression equation, Y=B0+B1x1, what is the output variable of interest?
The Federal Reserve Board - correct answer ✔In the United States, what is responsible for managing
the supply of money in the economy?
Fiscal Policy - correct answer ✔__________ has to do with taxing and spending
Player 1 receives $9 and player 2 receives $1 - correct answer ✔What is the Nash equilibrium of the
Ultimatum game where player 1 starts with $10 and player 2 starts with $0?
Economic Growth - correct answer ✔The increase in the market value of the goods and services
produced by an economy is...
An increase in employment - correct answer ✔Card and Kreuger (1994, 2000) studied the effects of
minimum wage on employment in the fast food industry. They found evidence that an increase to the
minimum wage resulted in...
Redistribution - correct answer ✔__________ involves taking from people who have more income and
giving to the people who do not have enough income.
Increase - correct answer ✔During a recession, Keynesian solution is for government spending to...
more - correct answer ✔Most people receive __________ in social security compared to the
contribution that they put in
more than - correct answer ✔Thousands of experimental studies have put to test the expectation of
the Ultimatum game and reveal that contributions are __________ the model predicts.
