Disadvantages of Experiments Include the Fact That

question 6

Multiple Choice

Disadvantages of experiments include the fact that:

• A) decisions made in the laboratory replicate those made in the real world.
• B) laboratory experiments introduce influences on decision making that are difficult to measure or control.
• C) the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population.
• D) decisions made in the laboratory replicate those made in the real world and the number of subjects is typically so large, that it is difficult to apply the results to economic behavior in the population.

---

Definitions:

Revenues

The total income produced by a company from its activities, before any expenses are subtracted.

Long-run Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity supplied over a period long enough for producers to adjust all of their inputs.

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, holding some inputs fixed.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service is sensitive to changes in price.