Economics Is a Science That

question 204

Multiple Choice

Economics is a science that:

• A)typically uses controlled experiments to learn about consumer and firm behavior.
• B)uses models that cannot be tested empirically due to the complex nature of the economy.
• C)explores how choices are made between conflicting wants and desires in a world of scarcity.
• D)relies entirely upon normative analysis.
• E)primarily focuses on budgetary decisions made by political leaders.

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Definitions:

Discount

A reduction from the usual cost of something, typically applied to incentivize purchase or payment within a certain timeframe.

Bonds Payable

A long-term liability account on a company's balance sheet representing the amount it owes to bondholders by the maturity date, typically including loans or other forms of debt obtained through issuing bonds.

Contra Account

An account used in financial reporting to reduce the value of a related account when the two are netted together.

Effective Interest Rate

The actual return on an investment or cost of a loan considering the effect of compounding interest, distinct from the nominal rate.