How does the sample size affect the validity of an empirical argument? When is it acceptable to use only one example to disprove a statement?
What will be an ideal response?
The size of the sample used to test the argument can affect the results. A small sample may bias the results of a study. A key strength of economic analysis is the amount of data used. Using a large number of observations strengthens the force of an empirical argument. For example, if you collect information on consumption from 20,000 people as opposed to 20 people, you are likely to get a more representative result. A single example can be used to contradict a statement. For example, a single black swan can disprove the statement that all swans are white.
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The __________ is equal to the current stock price minus the option exercise price
A) settlement price B) discount price C) intrinsic value D) mark-to-market settlement
Which term is used when the price is above the equilibrium price?
a. shortage b. surplus c. equilibrium d. no market
Which of the following is the formula for the average product of labor?
A. F(L) - F(L - ?L) B. F(L)/L C. F(L)/?L D. [F(L) - F(L - ?L)]/?L
The belief that everyone should have exactly the same amount of income is
A) merit standard. B) comparable-worth doctrine. C) egalitarian principle. D) Lorenz principle.