One Reason Economists Have Difficulty Applying the Scientific Method Is

question 54

Multiple Choice

One reason economists have difficulty applying the scientific method is because:

• A) economic conditions are constant.
• B) controlled laboratory experiments are often infeasible and sometimes impossible.
• C) people are involved,and their behavior is entirely unpredictable.
• D) the scientific method does not apply to economics.

Assess how specific similarities or differences affect the strength of analogical arguments.

Understand the inductive generalizations implied by arguments by analogy.

Identify possible fallacies in arguments by analogy.

Evaluate the relevance of specific connecting terms in forming strong analogical arguments.

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Definitions:

Variable Costs

These vary with output. When output rises, variable costs rise; when output declines, variable costs fall.

Break-Even Points

The production level or point in sales at which total revenues equal total expenses, resulting in neither profit nor loss.

Shutdown Point

The level of operations where a company's revenue from goods or services sold just covers its variable costs, beyond which it becomes more cost-effective to halt production.

Short Run

A period in which at least one input, such as plant size or capital, is fixed and cannot be varied to change output levels.