In Economics, the Function of Theories, Laws, and Hypotheses Is

question 32

Multiple Choice

In economics, the function of theories, laws, and hypotheses is to:

• A) prevent any misunderstanding of economic behavior.
• B) divide topics between microeconomics and macroeconomics.
• C) generate a complete and unchanging description of economic behavior.
• D) discover relationships between events that are important to economic behavior.

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Definitions:

Illusory Correlations

The perception of a relationship between two variables even when no such relationship exists.

Commonsense Understanding

The basic level of practical knowledge and reasoning about everyday situations and tasks.

Scientific Attitude

A mindset characterized by skepticism, open-mindedness, and the reliance on empirical evidence and systematic observation for understanding phenomena.

Skepticism

An attitude of doubt or a disposition to incredulity either in general or toward a particular object.