Which of the Following Statements Is True

question 72

Multiple Choice

Which of the following statements is true?

• A) Testing with data is essential to developing a good theory.
• B) The knowledge of economics complicates decision making.
• C) Cost-benefit analysis can be applied only to limited economic decisions.
• D) Economics is more of a theoretical subject with limited applications in the real world.

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Definitions:

Trade Barriers

Restrictions imposed by governments to regulate international trade, including tariffs, quotas, and non-tariff barriers.

Developing Countries

Nations with lower levels of industrialization, lower standards of living, and lower Human Development Index (HDI) scores compared to more developed countries.

Tariffs and Quotas

Government-imposed taxes on imported goods (tariffs) and limits on the quantity of imports (quotas) to protect domestic industries.

Private Capital

Funds or assets owned by individuals, companies, or investors, not by the government or public entities.