"Since the social sciences are not like the natural sciences, experiments are a waste of time." Comment on the above statement.
What will be an ideal response?
It is true that social sciences are not the same as natural sciences. Experiments have been
used successfully to tell us more about the world we live in. There are limits that social
scientists should be aware of, but to dismiss the use of experimental analysis entirely would be incorrect.
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If a professor gives up her job to open a shoe store, which of the following costs would an accountant tend to ignore?
A) The $1,500 per month lease for the shoe store. B) The $150 per month electricity bill. C) The $4,000 per month of income forgone by not being employed as a professor. D) The $200 business license, which, of course, is a sunk cost.
Suppose that IS and LM intersect at full-employment output. A leftward shift of IS will be followed by a __________ price level that shifts LM to the __________ in a return to full employment
A) rising; right B) rising; left C) falling; right D) falling; left