Which of the following statements is true?
A. Economic theory does not make unrealistic assumptions.
B. Economists should not ignore details while focusing on complex problems.
C. Abstraction forms an important part of economic analysis.
D. The word theory means same for both economists and laymen.
Answer: C
You might also like to view...
Which of the following is TRUE?
A) Technological efficiency occurs if the maximum feasible amount of output is achieved from a given quantity of inputs. B) Technological efficiency depends on the relative cost of the resources used in production. C) If production is technologically efficient, then it must be economically efficient. D) All of the above answers are correct.
The increase in the proportion of tertiary employment over time at the expense of both primary and secondary employment
(a) is peculiar to the western industrial countries. (b) is strictly an American phenomenon. (c) is present generally in all industrial countries. (d) is restricted to countries with relatively small government sectors.
What is the advantage of the standard deviation over the average deviation?
A) Because the standard deviation requires squaring of deviations before further computation, positive and negative deviations do not cancel out. B) Because the standard deviation does not require squaring of deviations, it is easy to tell whether deviations are positive or negative. C) The standard deviation removes the units from the calculation, and delivers a pure number. D) The standard deviation expresses the average deviation in percentage terms, so that different choices can be more easily compared. E) The standard deviation transforms subjective probabilities into objective ones so that calculations can be performed.
Are saving accounts money?
A. No, because counting saving accounts as money would double-count that money. B. No, because they technically can't be used to buy goods and services. C. Yes, because they can be used to buy goods and services. D. Yes, even though they technically can't be used to buy goods and services.