The Use of Statistics in Economics Is

question 26

Multiple Choice

The use of statistics in economics is

• A)to test predictions and to estimate the values of variables in economic theories.
• B)to study how the economic system should perform basic economic functions.
• C)to model nature.
• D)for descriptive purposes only.
• E)entirely devoid of ethical judgments.

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Definitions:

Tax Levied

A compulsory financial charge or a type of fee imposed by a governmental organization upon individuals or entities to fund government spending and various public expenditures.

Deadweight Loss

A reduction in economic productivity that arises when a good or service does not reach or cannot reach its market equilibrium.

Administrative Burden

The administrative and regulatory obligations that organizations must follow, often involving substantial paperwork and compliance efforts.

Tax System

The structured method by which governments impose financial charges on citizens, businesses, and property to fund public expenditures.