Economics is a science that:
A)typically uses controlled experiments to learn about consumer and firm behavior.
B)uses models that cannot be tested empirically due to the complex nature of the economy.
C)explores how choices are made between conflicting wants and desires in a world of scarcity.
D)relies entirely upon normative analysis.

Question

Economics is a science that:
A)​typically uses controlled experiments to learn about consumer and firm behavior.
B)​uses models that cannot be tested empirically due to the complex nature of the economy.
C)​explores how choices are made between conflicting wants and desires in a world of scarcity.
D)​relies entirely upon normative analysis.

Quizplus · Accepted Answer

Economics is concerned with the allocation of scarce resources to satisfy unlimited wants and needs. Therefore, it studies how individuals, firms, and governments make choices to allocate resources efficiently. Controlled experiments are not always possible due to ethical and practical concerns, and the complex nature of the economy makes it difficult to test models empirically. Normative analysis is only one aspect of economics and does not form the entirety of the discipline.

Economics Is a Science That