ECN 110 : M TB Sample Questions Ch 2.pdf

Which of the following statements applies to economics as well as to other sciences such as physics?

a. Experiments are considered valid only when they are conducted in a laboratory.

b. Good theories do not need to be tested.

c. Real-world observations often lead to theories.

d. Economics, as well as other sciences, is concerned primarily with abstract concepts.

 

Why is the use of theory and observation more difficult in economics than in sciences such as physics?

a. Due to the difficulty in evaluating an economic experiment
b. Due to the lack of funding for economic experiment
c. Due to the difficulty in actually performing an experiment in an economic system
d. Due to the difficulty in collecting sufficient data