Econ 252 - Purdue University - Exam 1 Questions & Answers 2024 ( A+ Graded 100% Verified)

When economists test their theories using​ evidence-based analysis, they are most likely using​ __________. A. ​opportunity-cost analysis. B. equity analysis through the use of models. C. empiricism through the use of data. D. optimization through observation. {Ans: C. empiricism through the use of data.}Not everyone falls prey to this effect. According to the​ article, A. Poorer people are compelled to value saved pennies in relative rather than absolute terms. B. Poorer people are compelled to value saved pennies in absolute rather than relative terms C. Richer people are compelled to value saved pennies in absolute rather than relative terms. D. Richer people​ don't care about saving money. {Ans: B. Poorer people are compelled to value saved pennies in absolute rather than relative terms}For a market to be in​ equilibrium, three conditions must hold. Fill in the blanks below to complete these conditions.: 1. The amount produced by sellers must be _______ the amount purchased by buyers. 2. The costs of making a product must be ______the final price at which the product sells. 3. Buyers must place a value on the uses of the product that is _____ the cost of buying the product. A. Less Than B.