Economics is called an empirical science because
A) economists study real-world evidence to test their models.
B) economists use assumptions to test their models.
C) economic models have no predictive power.
D) economic analysis is only useful in a pure market economy.
Answer: A
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With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
B. whether the producer surplus lost to deadweight loss is larger than the producer surplus gained from a higher price.
C. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
D. whether the producer surplus lost due to lower prices is larger than the producer surplus lost due to fewer transactions taking place.
An industry with a Herfindahl-Hirschman index of 1,000 would have ____ firm(s).
A. 1 B. 10 C. 100 D. 1,000
The poverty rate in the United States is lowest for:
A. whites. B. blacks. C. Hispanics. D. Asians.
The best example of a positive externality is:
A. alcoholic beverages. B. roller coaster rides. C. education. D. pollution.