Economics Is a Science That

question 143

Multiple Choice

Economics is a science that:

• A)​typically uses controlled experiments to learn about consumer and firm behavior.
• B)​uses models that cannot be tested empirically due to the complex nature of the economy.
• C)​explores how choices are made between conflicting wants and desires in a world of scarcity.
• D)​relies entirely upon normative analysis.

---

Definitions:

Critical Value

A point on the scale of a test statistic beyond which we reject the null hypothesis, often associated with the desired significance level of a test.

Alpha

A threshold value used in hypothesis testing that defines the probability of making a Type I error, or rejecting a true null hypothesis.

Critical Value

A threshold in statistical testing that defines the boundary for rejecting the null hypothesis.