Exercises: Thinking like an economist

Distinguish between positive and normative statements. Classify each of the following:

1. a) Unemployment in Ireland fell last year.

1. b) The Government should raise the minimum wage.

1. c) A rise in interest rates reduces borrowing.

1. d) Rents in Dublin are too high.

Name and describe the main economic features of the Great Depression of the 1930s.

A survey records the weekly spending on food by 10 households (in euro): 90, 110, 85, 120, 95, 100, 130, 105, 90, 75.

1. a) Calculate the mean.

1. b) Find the median.

1. c) Find the range.

Describe the main causes and effects of the Irish economic crisis of the 1950s, including emigration, protectionism and low growth. Explain the policy changes that followed in the late 1950s.

The table gives Irish unemployment (%) over five years: 4.5, 5.0, 7.0, 12.0, 14.5.

1. a) Calculate the percentage point change from the first to the last year.

1. b) Calculate the percentage change in the unemployment rate from the first to the last year.

1. c) Name the period of Irish history this resembles and describe its causes.

A student wants to find out whether students in her school who work part-time have lower exam results. Describe how she should design a short survey: sample selection, questions, data presentation and possible sources of bias.

Compare the causes of the Great Recession and the Irish banking crisis of 2008–2010 with those of the Great Depression. Discuss the policy responses and the extent to which lessons were learned.

"Economics is a science because economists use models and data." Evaluate this claim, referring to the use of assumptions such as ceteris paribus, the difficulty of controlled experiments, the role of value judgements and the distinction between positive and normative economics.

A research study finds that counties with higher spending on youth training programmes have lower youth unemployment.

1. a) Explain the difference between correlation and causation using this example.

1. b) Suggest two other factors that could explain the relationship.

1. c) Describe what additional data or approach would strengthen the conclusion and discuss the ethical and practical limits of obtaining it.