How Does the Study Reported in the Evidence-Based Economics Element

question 42

Multiple Choice

How does the study reported in the Evidence-Based Economics element in this chapter demonstrate the law of demand?

• A) It relies on theoretical graphs of the demand curve for gasoline.
• B) It uses different tax and subsidy policies across Latin American countries as a natural experiment.
• C) It compares the quantity demanded before and after the Venezuelan government ended gasoline subsidies.
• D) It compares the quantity demanded between Latin American countries and Middle East countries.

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Definitions:

Explanandum

The term explanatory in nature, referring to a statement or phenomenon that needs to be explained.

Hypothesis

A suggested theory put forward with minimal evidence as an initial step for more in-depth inquiry.

Proposition

An announcement or avowal that presents an evaluation or sentiment.

Hypothesis

A supposition or proposed explanation made on the foundation of limited information, aimed at further examination.