Question

In conducting their research, economists face a challenge that not all scientists face. Which of the following statements best describes this challenge and the way in which economists handle it? O Economists cannot use the scientific method because their object of study is the behavior of human beings which is difficult to observe and inherently unpredictable. Thus economists rely on rules of thumb instead of theories and predictions. O It is difficult and sometimes impossible for economists to conduct controlled experiments. Thus, economists abandon the scientific method and use a variety of other methods to obtain knowledge about the world. O It is difficult and sometimes impossible for economists to conduct controlled experiments in economics. Therefore, economists often rely on natural experiments to test their theories. O Economics can conduct controlled experiments only in the area of macroeconomics. Therefore, in microeconomics economists rely on natural experiments offered by history.

Answer 1

Option 1

Economics involves study of consumer behavior which basically deals with the understanding the psychological behavior of individuals on their tastes and preferences which might change often and difficult to predict