To Be Useful, an Economic Theory Should

question 34

Multiple Choice

To be useful, an economic theory should

• A)be based on reasonable assumptions.
• B)generate predictions that can be verified with actual data.
• C)actually have its predictions corroborated with data.
• D)be based on reasonable assumptions, generate predictions that can be verified with actual data, and actually have its predictions corroborated with data.

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Definitions:

C Corporations

A type of corporation in the United States taxed separately from its owners, offering limited liability protection to its shareholders.

S Corporations

A type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.

Taxed

Subjected to a financial charge or levy imposed by a governmental organization on income, goods, or activities.

Managerial Conflict

Refers to disputes or disagreements among individuals in managerial or supervisory positions within an organization, often arising from differences in opinions, decisions, or management styles.