The Scientific Method Refers to the Process by Which Economists

question 6

Multiple Choice

The scientific method refers to the process by which economists and other scientists ________.

• A) collect data for further use in research
• B) develop models of the world and test those models with data
• C) develop models to explain the past but not to predict the future
• D) plot graphs to illustrate relationships between different economic variables

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Definitions:

Business Cycle

The fluctuation in economic activity that an economy experiences over a period of time, consisting of expansion (growth) and contraction (recession) phases.

High Point

The highest value or peak that an economic indicator or a market index reaches over a specific time period.

Capital Goods

Long-lasting goods used in the production of other goods or services, such as buildings, machinery, and equipment.

Money Supply

This refers to the total amount of monetary assets available in an economy at a specific time.