One of the Important Factors to Consider When Evaluating the Usefulness

question 51

True/False

One of the important factors to consider when evaluating the usefulness of a theory is whether the theory stimulates the discovery of new knowledge.

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Definitions:

Tax

A mandatory monetary contribution or different sort of tax levied on a taxpayer by a government entity to finance government expenditure and assorted public costs.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is distorted.

Equilibrium

An economic situation in which no individual would be better off doing something different.

Perfectly Inelastic

A situation where the demand or supply for a good is completely unresponsive to changes in price.