The Two Basic Reasons Why Economists Often Appear to Give

question 14

Multiple Choice

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

• A)opinions and education.
• B)opinions and values.
• C)scientific judgments and education.
• D)scientific judgments and values.

Understand the method of introspection and its role and limitations in early psychological research.

Understand how to compute percent frequency for data classes.

Identify the most common graphical presentations of quantitative data.

Grasp the concept of a frequency distribution and its importance.

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.

Variable Costs

Charges that adjust in direct proportion to the manufacturing output or the quantity of sales.

Fixed Costs

These are consistent expenses incurred by a business, regardless of production levels or sales volumes, such as rent or salaries.

Profit-Volume Chart

A chart plotting only the difference between total sales and total costs for various levels of units sold.