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:

Acquisition Differential

The gap between what a company is bought for and the net market value of its recognizable assets and liabilities.

Joint Venture

A business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

Retained Earnings

Accumulated net profits of a company not distributed as dividends but reinvested in the business or kept as a reserve.

Non-Controlling Interest

A ownership in a corporation where the stake is less than a majority of the voting shares, often referring to minority interests in subsidiary companies.