Economics is an empirical science, which means that economists
A) must use laboratory experiments to test their theories.
B) evaluate a model or theory by whether its assumptions are consistent with the real world.
C) try to prove their models are true by referring to logic.
D) look for evidence to determine whether the model is useful or not.
Answer: D
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Moving between two points on a PPF, a country gains 8 desktop computers and forgoes 4 laptop computers. The opportunity cost of 1 desktop computer is
A) 4 laptops. B) 1/2 of a lapto
Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
a. Income security. b. National defense. c. Education and health. d. Interest on the national debt.
The factors of production are best defined as the
a. output produced from raw materials. b. inputs used to produce goods and services. c. wages paid to the workforce. d. goods and services sold in the market.
When a corporation issues a bond, it is
A. Lending money to the owners of the corporation. B. Issuing dividends to shareholders. C. Borrowing funds from the initial buyer of the bond. D. Making an initial public offering.