With Respect to How Economists Study the Economy,which of the Following

question 71

Multiple Choice

With respect to how economists study the economy,which of the following statements is most accurate?

• A)Economists study the past,but they do not try to predict the future.
• B)Economists use "rules of thumb" to predict the future.
• C)Economists devise theories,collect data,and analyze the data to test the theories.
• D)Economists use controlled experiments in much the same way that biologists and physicists do.

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Long-lived Assets

Assets that are expected to provide economic benefits over a period longer than one year, such as buildings or machinery.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of the identifiable assets and liabilities.

ASPE

Accounting Standards for Private Enterprises; a set of accounting guidelines for private companies in Canada.