The Scientific Method Is More Difficult for Economists Than, Say

question 132

Multiple Choice

The scientific method is more difficult for economists than, say, chemists, because:

• A) controlled laboratory conditions are more problematic in economics.
• B) it is difficult to hold other factors that may affect the variables being studied constant in economics.
• C) economic conditions may change quickly and unexpectedly.
• D) all of the above.

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Definitions:

Default Risk

The risk that a borrower will not make the required payments on their debt obligations, leading to a default.

Semiannual Coupon

Interest payments made to bond investors every six months as part of the bond's fixed-income return.

Bond Rating

An evaluation provided by a credit rating agency regarding the creditworthiness of a bond issuer, affecting the interest rates and investment appeal of its bonds.

Secured Debt

A debt that is backed by collateral, providing the lender with assurance that the loan can be recovered if defaulted.