Which of the Following Explains Why Economists May Disagree Over

question 96

Multiple Choice

Which of the following explains why economists may disagree over normative issues?

• A) They have different beliefs and values.
• B) They examine the same data to draw their conclusions.
• C) They need to disagree in order to publish their research findings.
• D) They often employ different statistical techniques when examining data.
• E) Some work only on microeconomic issues,while others focus exclusively on macroeconomic issues.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Adverse Selection

A situation in insurance and markets where buyers and sellers have different information, leading to transactions where the seller is more likely to sell a low-quality product.

Insurance

A financial product offering protection against a loss, providing compensation in the event of specific financial damages or risks occurring.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to purchase insurance or contracts than low-risk ones.