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:

Reorder Point

The specific inventory level at which an order for more supply is initiated to replenish stock before it runs out.

Carrying Cost

The complete expense associated with maintaining stock, which encompasses costs for storage, management, decrease in value, and missed opportunities.

Order Costs

Expenses associated with placing orders for products or services, including costs involved in ordering and receiving goods.

Effective Annual Rate

The interest rate on an investment or loan that is adjusted for compounding over a specified period, often annually.