When testing theories, economics is disadvantaged compared to the natural sciences because... Select one: A. it deals with human behaviour and thus is not open to empirical testing. O B. it is usually not possible to conduct controlled experiments in economics, in contrast with certain other sciences. O C. economic hypotheses cannot be accepted with complete certainty, in contrast with the other sciences. O D. economic variables do not change enough to provide reliable data for testing hypotheses. E. some economic variables are determined within the theory.

Which of the following statements is FALSE? a.) Economists seek to apply the scientific method to social science questions. b.) Experimentation is the core of most economic analysis. c.) The validity of an economic assumption depends on context. d.) Models can provide useful insights even though they are simplifications of reality.

Suppose the president is attempting to decide whether the federal government should spend more on research to find a cure for heart disease. What is the opportunity cost of spending more money to find a cure for heart disease? O A. The total explicit cost of the research to cure heart disease. OB. The reduction in funding for research to cure other diseases. O C. The monetary value of a human life. O D. The cost of the Medicare/Medicaid program. O E. The reduction in future health-related costs of heart disease. How should policymakers determine the amount of money that should be allocated for research curing heart disease? They should base their decision on O A. the number of people who have heart disease compared to the number of people who have other diseases. O B. whether the last dollar devoted to research on heart disease results in more benefit than the last dollar spent on research for curing other diseases. O C. the value of the total benefit of research on curing other…

A researcher gave sports-card traders a sports card in exchange for their participation in thestudy. There were two possible cards, A and B. Each participant randomly received one ofthe two cards, and was then asked whether she would like to exchange it for the other card.a) By neoclassical (traditional economics) logic, approximately what percentage ofparticipants should exchange? Why? (Hint, the reason does not depend on whetherthe two cards are of equal value.)b) Among inexperienced traders, 6.8% make the exchange. Explain this phenomenon using prospect theory.c) Among experienced traders, 46.7% make the exchange. Why might experiencedtraders behave differently from inexperienced ones?

From June 2017 to June 2018, the price of jet fuel jumped 33%. a. Based on a general Cournot model, use calculus to show how much a marginal change in the marginal cost, m, affects the equilibrium price. b. In 2018, fuel cost was about 23% of airlines' costs. Calculate how much a one-third increase in fuel costs would have affected the equilibrium price in the airline model in this chapter. Why did prices rise less than in proportion to per-passenger-per-day cost? M