Why are economic theories and principles imprecise? Shouldn’t they apply to everyone?
Please provide the best answer for the statement.
The main reason is that they are generalizations relating to economic behavior or the economy. The economic facts used to develop the theories and principles differ from person to person or economic institution to institution. They reflect tendencies or averages across large groups that may not apply to a particular individual. For example, if the price of a product drops significantly, the quantity demanded among consumers as a group is expected to increase, but some consumers may not increase their purchases.
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A citizen of the U.S. buys a factory in London. This is an example of a(n) ________
A) foreign portfolio investment B) export by the U.S. C) foreign direct investment D) import by the U.S.
The highest-income fifth of the U.S. population earns more than 50 percent of all income
a. True b. False Indicate whether the statement is true or false