When Testing Theories,economics Is Disadvantaged Compared to the Natural Sciences

question 127

Multiple Choice

When testing theories,economics is disadvantaged compared to the natural sciences because

• A)it deals with human behaviour and thus is not open to empirical testing.
• B)it is usually not possible to conduct controlled experiments in economics,in contrast with certain other sciences.
• C)economic hypotheses cannot be accepted with complete certainty,by contrast with the other sciences.
• D)economic variables do not change enough to provide reliable data for testing hypotheses.
• E)some economic variables are determined within the theory.

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Definitions:

AVC

Average Variable Cost is the total variable costs divided by the quantity of output produced.

AFC

Average Fixed Cost, the fixed cost per unit of output, calculated by dividing total fixed costs by the quantity produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Average Fixed Cost

The fixed cost per unit produced, calculated by dividing total fixed costs by the quantity of output produced.