Which of the Following Explains Why Economists May Disagree Over

question 123

Multiple Choice

Which of the following explains why economists may disagree over positive issues?

• A) They have different beliefs and values.
• B) They examine the same data to draw their conclusions.
• C) They need to disagree in order to publish their research findings.
• D) They often employ different models and statistical techniques when examining data.
• E) Some work only on microeconomic issues,while others focus exclusively on macroeconomic issues.

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Definitions:

Variable Overhead

Costs that fluctuate with changes in production volume, such as utilities and materials, affecting the cost to produce goods or services.

Direct Materials

The raw materials that are directly traceable to the production of a specific product and constitute a significant portion of the product's direct costs.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing products or delivering services.

Variable Overhead

Costs of production that fluctuate with the level of output, such as utility expenses for machinery, which increase with more extensive production.