To test their theories, economists usually have to
A. conduct experiments that involve people who do not behave rationally.
B. set up careful laboratory experiments with all variables controlled.
C. first examine theory and compare it with what happened in the past in the real world.
D. use only models that have a proven record of success.
Answer: C
You might also like to view...
Suppose that the production function for the economy is: Y = AK1/4L3/4. Assume that A = 1,000, the capital stock is $32,000 billion, and the current labor force is 120 million (or 0.120 billion) workers
All else equal, if the labor force increased by 20 million workers, the value of the marginal product of capital will be A) $0.0104. B) $0.0239. C) $0.0639. D) $0.0717.
An individual's supply curve is backward bending
a. True b. False Indicate whether the statement is true or false
The central bank of Vervia buys and sells government bonds to alter the level of money supply in the country. This method of controlling the money supply is known as: a. crowding out
b. forward guidance. c. open market operations. d. quantitative easing.
Cyclical unemployment is primarily caused by:
A. a large proportion of youthful workers in the labor force. B. fluctuations in aggregate demand. C. a lack of training on the part of job seekers. D. the failure of job seekers to search adequately for the available jobs.