Economic Theory

question 12

Multiple Choice

Economic theory:

• A)seeks to explain economic events
• B)seeks to predict economic events
• C)abstracts from the many detail that surrounds an economic event
• D)all of the above

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Definitions:

Loads

Charges or fees that investors pay when buying or selling mutual funds, often used to compensate sales intermediaries.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Cakes

Baked desserts that are typically sweet and made from ingredients such as flour, sugar, and eggs.

Absolute Advantage

A scenario in which a country can produce a particular good or service more effectively than another country with the same amount of resources.