Economists and Others Use Economic Theory

question 1

Multiple Choice

Economists and others use economic theory

• A)only to analyze situations in which money changes hands.
• B)as a partial basis for public policy recommendations.
• C)to confuse their enemies.
• D)to replace value judgments about important policy issues.

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Definitions:

Constitute

To compose or form something, often used in a legal or formal context to indicate the components that make up a whole.

Probabilities

Measures the likelihood of an event occurring, ranging from 0 to 1.

Mutually Exclusive

Describes events that cannot occur at the same time.

Possible Outcomes

All the potential results that may occur from a specific action, experiment, or situation.