Instead of conducting laboratory experiments to generate data to test their theories, economists often
a. ask winners of the Nobel Prize in Economics to evaluate their theories.
b. argue that data is impossible to collect in economics.
c. gather data from historical episodes of economic change.
d. assume that data would support their theories.
c
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,
A. MU = MSC. B. P < MPC. C. MPC < MSC. D. MPC > MSC.
If prices rise by 4% in a year and nominal wages increase by only 2%, then real wages will
A. increase by 2%. B. decrease by 4%. C. decrease by 2%. D. decrease by 6%.
In the late 1970s, ________ of all firms were less than a year old. In recent years, ________ were
A) about 40 percent; about 20 percent B) almost half; less than one-quarter C) less than 5 percent; more than 40 percent D) more than 15 percent; only about 8 percent