Should economics be considered a science? Why or why not?
What will be an ideal response?
Yes. Economics uses models and theories to make predictions and then tests those predictions using empirical analysis.
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Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
What is the equilibrium outcome of this game?
A. Player 1 chooses Up and Player 2 chooses Down. B. Player 1 chooses Down and Player 2 chooses Up. C. Player 1 and Player 2 both choose Down. D. Player 1 and Player 2 both choose Up.
An airlines realizes that instead of offering free checked in baggage, they could put a charge on checked baggage without the demand for the tickets decreasing. The space saved can be used to carry priority mail packages, with hardly any additional costs. The airlines has realized
a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope
If the rates of return in a particular country appear to be relatively low, then that country will tend to attract funds from abroad
a. True b. False Indicate whether the statement is true or false
General Equilibrium assumptions are the same assumptions we used in a ___________________
Fill in the blank(s) with the appropriate word(s).