The scientific method and the tools of economics are useful in examining
A) only how individuals make decisions.
B) only how business firms make decisions.
C) only how government policies affect macroeconomic outcomes.
D) only the trade-offs evident in the production possibilities frontier (PPF).
E) anything; economists will use their tools to study anything in the world around them.

Question

Quizplus · Accepted Answer

The scientific method and the tools of economics can be applied to study any phenomenon or issue, whether it relates to individual decision making, business operations, government policies, or macroeconomic trends. Economists use economic theories, models, data analysis, and empirical evidence to test hypotheses and evaluate the costs and benefits of different options. Therefore, the tools of economics are not limited to a specific area of inquiry, but can be utilized to examine a broad range of topics.

The Scientific Method and the Tools of Economics Are Useful