Explain why economics is a science and how it differs from a physical science.
What will be an ideal response?
ANS:
Economics is a science because it is an organized body of knowledge with certain rules, laws, and principles. It differs from many of the physical sciences, such as chemistry, physics, and biology, in having fewer universal or ironclad laws. Moreover, it deals more with the actions of people rather than things.
You might also like to view...
If the demand for a product remains the same and the supply falls,
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
When a tariff is imposed on the import of a good in a country, the quantity of the good that can be sold by domestic producers to foreign countries is limited
a. True b. False Indicate whether the statement is true or false
Greater scarcity of a natural resource is indicated
a. by an increase in the price of the resource, whether the price increase is less than or greater than the rate of inflation. b. only by an increase in the price of the resource that is less than the rate of inflation. c. only by an increase in the price of the resource that is greater than the rate of inflation. d. only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.
If the price elasticity of demand for a good is -0.8 and quantity demanded decreases by 40%, price must have
A. decreased by 20%. B. increased by 32%. C. increased by 5%. D. decreased by 32%. E. none of the above