Economics Is an Empirical Science, Which Means That Economists

question 157

Multiple Choice

Economics is an empirical science, which means that economists

• A) must use laboratory experiments to test their theories.
• B) evaluate a model or theory by whether its assumptions are consistent with the real world.
• C) try to prove their models are true by referring to logic.
• D) look for evidence to determine whether the model is useful or not.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.