Economists Employ the Scientific Method to Help Explain Economic Behavior

question 127

Multiple Choice

Economists employ the scientific method to help explain economic behavior. In part, this means that:

• A) there is a single economic theory accepted by all economists.
• B) economic hypotheses are tested to determine their validity.
• C) all economic laws have been proven true by laboratory tests.
• D) personal values never enter into economic policy recommendations.
• E) assumptions are not necessary in economics.

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Definitions:

Normal Distribution

Data points nearest to the mean occur more frequently in this symmetric probability distribution, with diminishing occurrences of data points as they deviate from the mean.

Standard Deviation

A measure of the dispersion or spread of a set of data points relative to their mean.

Mean

The average of a set of numbers, calculated by dividing the sum of the values in the set by their number.

Uniform Distribution

A type of statistical distribution where all outcomes are equally likely; each number within a certain range has an equal chance of being selected.