Chapter 1 introduction to managerial economics 6 13

Chapter 1 Introduction to Managerial Economics 6
13. Which of the following statements is contains the least truth ?
a. Economic theories are simplified versions of reality
L b. Economic theories are always complex and therefore of use only to economists
c. Economic theories are useful in practice because they do not include all the details of reality
d. Economic theories make assumptions that are not realistic.
14. An economic theory or model is 15. The best scientific economic model is the one which
16. A tautology is 17. Which of the following statements is normative ?
a. Poverty is the most important social problem of our time
b. Poverty should be eliminated
c. Poverty is a deplorable evil because it causes crime
d. Congress should devote more resources to reducing poverty
L e. All of the statements above are normative
18. Which of the following statements is positive ? 19. Which of the following is not a part of the scientific method?

Chapter 1 Introduction to Managerial Economics 7
20. Normative statements in economics
L