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Which of the following statements is NOT true?

a. Economics is the study of how people allocate their limited resources to satisfy their unlimited wants.
b. Economics is an empirical science.
c. Economics is a social science.
d. Economics does not use theories.

1 Answer

5 votes

Answer:

D. Economics does not use theories.

Step-by-step explanation:

Economics is the study of : limited resource allocation, having alternative uses - to satisfy unlimited wants.

Economics is both a science (empirical science) & art (social science).

Economics has generally accepted rules & laws, based on experimentation - like Empirical Science. Eg: Law of Demand stating inverse relationship between price & quantity demanded.

Economics has subjective application essence to solve economic issues - like Social Science / art. Eg: Contractionary monetary policy (reducing money supply) to solve inflation (high price level)

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