Moderate

Data are important in economics because _________ and ____________?

Correct answer: A. they suggest relationships for explanation, allow testing of hypotheses

  • A. they suggest relationships for explanation, allow testing of hypotheses
  • B. they can be used for tables, they can be graphed
  • C. they can be used in computers governments use them
  • D. they provide interesting information can be summarized

Explanation

Economic data help economists identify relationships between variables and test whether hypotheses are supported by evidence. Tables and graphs are methods of presenting data, not their main economic importance.

Last updated

About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

Practise Microeconomics

1,705 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Related questions