Which Is the Best Statement About the Way Economists Study

question 16

Multiple Choice

Which is the best statement about the way economists study the economy?

• A) they study the past but do not try to predict the future
• B) they devise theories, collect data, then analyse the data to test the theories
• C) they use a probability approach based on correlations between economic events
• D) they use controlled experiments in much the same way a biologist or physicist does

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Definitions:

Microfinance

The provision of small loans and other financial services to low-income entrepreneurs and small-business owners in developing countries.

Microcredit

Small loans given to entrepreneurs in developing countries as a way to foster economic development and alleviate poverty.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise, often bringing innovation to the market.

Microcredit

Refers to the provision of small loans to individuals in impoverished countries or regions to promote entrepreneurship and alleviate poverty.