In economics, the function of theories, laws, and hypotheses is to:
A) prevent any misunderstanding of economic behavior.
B) divide topics between microeconomics and macroeconomics.
C) generate a complete and unchanging description of economic behavior.
D) discover relationships between events that are important to economic behavior.
Ans: D) discover relationships between events that are important to economic behavior.
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The time between the policy decision and the subsequent change in policy instruments is called the
A) data lag, the time required to collect and analyze data. B) effectiveness lag, the time required for the change in money supply to affect real output. C) legislative lag, the time required for policymaking body to make decisions. D) transmission lag, the time between the change in policy and the change in policy instruments.
The definition of cross elasticity of demand for two products X and Y is
a. percentage change in quantity of X demanded/percentage change in quantity of Y demanded. b. percentage change in price of Y/percentage change in quantity of X demanded. c. percentage change in price of Y/percentage change in price of X. d. percentage change in quantity of X demanded/percentage change in price of Y.
When an employee at a grocery store scans the price of your items, bags the groceries, and collects your paper, the individual has provided
A) physical capital.
B) entrepreneurship.
C) a service.
D) land.
The idea that income redistribution violates the proposition that "one is entitled to the fruits of one's efforts" is a common argument most used
A. in favor of income redistribution. B. against income redistribution. C. in favor of an equal distribution of income. D. in favor of raising the minimum wage.