43
When a generalization is made based on observed facts, it is known as?
- A. deductive reasoning
- B. inductive reasoning
- C. theoretical reasoning
- D. normative reasoning
44
A change in supply is best described as a?
- A. movement along the supply curve
- B. shift of the supply curve to the left or to the right
- C. shift of the supply curve to the left
- D. shift of the supply curve to the left
45
Economics is regarded as a social science because it?
- A. adopts the scientific method in production
- B. is an agent of socialization
- C. adopts the scientific method in the study of human behaviour
- D. adopts the scientific method with social problems
46
A normal good with close substitutes is likely to have its price elasticity of demand?
- A. between zero and one
- B. equal to unity
- C. less than unity
- D. greater than unity
47
For a supply curve, an increase in the price of a commodity will result in?
- A. a decrease in supply
- B. a decrease in the quantity supplied
- C. an increase in supply
- D. an increase in the quantity supplied
48
At the consumer equilibrium, the slope of the indifference curve is?
- A. half the slope of the budget constraint line
- B. equal to the slope of the budget constraint line
- C. greater than the slope of the budget constraint line
- D. less than the slope of the budget constraint line
49
In a free market economy, the price system allocates resources?
- A. under government's directives
- B. to ensure general welfare
- C. to their best alternatives
- D. to reduce poverty
50
If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?
- A. an increase in profit by 43%
- B. a net gain
- C. a decrease in profit 43%
- D. a net loss