Economics Is a Social Science Rather Than a "Hard" Science

question 158

Multiple Choice

Economics is a social science rather than a "hard" science like physics because

• A)economists abstract from reality when creating their theories.
• B)economics is easier to study than physics.
• C)economists must explain their theories to policy makers who lack formal mathematical training.
• D)economists study human behavior, which is affected by an unpredictable and vast range of influences.

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Definitions:

Fair Value Method

An accounting approach that assesses the price of an asset or liability based on current market conditions, rather than historical cost.

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets.

Measuring NCI

Stands for the process of valuing a Non-Controlling Interest, which represents ownership in a subsidiary not held by the parent company.

Ordinary Shares

Equity securities representing ownership in a company, which entitle holders to vote at shareholder meetings and receive dividends.