Ask Question
BusinessBusiness
18 February, 10:35

Which of the following statements is true? a. The word theory means same for both economists and laymen. b. Abstraction forms an important part of economic analysis. c. Economic theory does not make unrealistic assumptions. d. Economists should not ignore details while focusing on complex problems.

+5
Answers (1)
  1. 18 February, 11:22
    0
    B) Abstraction forms an important part of economic analysis.

    Explanation:

    Economic abstraction refers to ignoring certain factors while doing economic analysis. Some minor or even important economic details must be assumed when trying to analyze certain situations. That is why economists love to use ceteris paribus (everything else constant). Macroeconomic theory is impossible to prove in a scientific way, only certain microeconomic theories can be tested scientifically. In order to perform macroeconomic analysis, economists must simplify the real world, since economy is too complex and has too many factors that can alter any possible analysis. It is impossible to analyze a nation's economy as a whole since millions of people and businesses make billions of economic decisions very day.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following statements is true? a. The word theory means same for both economists and laymen. b. Abstraction forms an important ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A stock is trading at $50. You believe there is a 60% chance the price of the stock will increase by 10% over the next 3 months.
Answers (1)
What are the pros and cons of relocating a small or midsized manufacturing firm (that makes mature products) from the united states to china?
Answers (1)
An account that would be increased by a debit is A. cash. B. fees earned. C. capital.
Answers (1)
An insurance company estimates that it should make an annual profit of $150 on each homeowners policy written, with a standard deviation of $6000. a) Why is the standard deviation so large
Answers (1)
Paulson Company began the year with retained earnings of $500,000. During the year, the company issued $720,000 of common stock, recorded expenses of $2,000,000, and paid dividends of $80,000.
Answers (1)
New Questions in Business
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000.
Answers (1)
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows:Summarized Income StatementSales $50,000,000All Cost (incl.
Answers (1)
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,600 (that had cost $6,355) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
Answers (1)
G. R. Edwin Inc. had sales of $6.02 million during the past year. The cost of goods sold amounted to $3.06 million. Operating expenses totaled $2.65 million, and interest expense was $27 comma 000.
Answers (1)
During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan, which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amount of interest due.
Answers (1)
Home » Business » Which of the following statements is true? a. The word theory means same for both economists and laymen. b. Abstraction forms an important part of economic analysis. c. Economic theory does not make unrealistic assumptions. d.
Sign Up Forgot Password?