Which of the following is NOT a key principle of economics?
A) Optimization
B) Equilibrium
C) Empiricism
D) Substitution

Question

Quizplus · Accepted Answer

Substitution is actually a key concept in economics, particularly in microeconomics. However, it is not a key principle. The three key principles of economics are optimization, equilibrium, and empiricism. Optimization refers to the idea that individuals and firms make decisions to maximize their utility or profits. Equilibrium refers to the idea that markets tend to settle at a point where supply and demand are balanced. Empiricism refers to the use of data and observation to test economic theories and models.

Which of the Following Is NOT a Key Principle of Economics