Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)Economists almost always find it easy to conduct experiments in order to test their theories.
• B)Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories.
• C)Economics is a social science rather than a true science because it cannot employ the scientific method.
• D)Economists are usually not allowed to conduct experiments, and so they must rely on natural experiments offered by history.

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Definitions:

Dividend

A distribution of earnings given by a company to its stockholders, typically from its profits.

Par Value

The face value of a bond or stock as stated by the issuing company, often the minimum amount the security can be sold for.

Stockholders' Equity

The value of a company divided among its shareholders, often represented as the difference between assets and liabilities.

Additional Paid-In Capital

The amount of money investors have paid for shares above the nominal value during stock issuances, reflecting excess capital received by a company.