Macroeconomists Cannot Conduct Controlled Experiments, Such as Testing Various Tax

question 48

Multiple Choice

Macroeconomists cannot conduct controlled experiments, such as testing various tax and expenditure policies, because:

• A)it is against the law.
• B)they tried it once and it did not work.
• C)they must make use of the data history gives them.
• D)economists already know the Answer s that would come out of

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Implicit Cost

The opportunity cost equal to what a firm must give up or forgo in order to use resources in its own operations, not directly paid in money.

Part-Time Employees

Part-time employees are workers who are employed for fewer hours than the standard full-time work schedule, often without the same benefits as full-time employees.