The Collection and Use of Data to Test Economic Theories

question 94

Multiple Choice

The collection and use of data to test economic theories is

• A) empirical economics.
• B) descriptive economics.
• C) normative economics.
• D) positive economics.

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Definitions:

Average Cost

This is the total cost divided by the number of goods produced, representing the cost on average for each unit produced.

Marginal Cost

The financial commitment for producing one more unit of a product or service.

Franchise

A type of license that grants a franchisee access to a franchisor’s proprietary knowledge, processes, and trademarks, allowing them to sell a product or service under the business's name.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that producers are willing to supply.