Economists spend much of their time
A)describing how choices are made and analyzing the results of those choices.
B)arguing that optimal decisions are rarely made at the margin.
C)using normative analysis to develop economic models.
D)telling businesses what goods and services to produce and how to produce them.

Question

Quizplus · Accepted Answer

Economists use descriptive analysis to understand how people make choices and use analytical tools to assess the outcomes of those choices. This helps them develop theories and models to explain economic behavior and make predictions about future economic activity. Option B is not accurate as economists often use marginal analysis to make optimal decisions, and option C is incorrect as normative analysis is not the primary tool used in economic modeling. Finally, economists do not tell businesses what to produce or how to produce it, so option D is also not accurate.

Economists Spend Much of Their Time