Of the Following,which Is the Most Important Characteristic of a Successful

question 60

Multiple Choice

Of the following,which is the most important characteristic of a successful theory?

• A)all assumptions on which the theory is based are true
• B)the theory allows us to predict behaviour reasonably accurately
• C)the theory provides a basis for facts about economic behaviour
• D)the theory adequately explains all economic behaviour
• E)the theory could never be refuted

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Definitions:

Labor Force Statistics

Data and metrics that provide information about the employment and unemployment rates, workforce composition, and other labor market indicators.

Efficiency Wages

Wages set above the equilibrium level by employers to increase worker productivity, discourage turnover, and reduce shirking.

Efficiency-Wage Theory

A theory suggesting employers pay above the market equilibrium wage to increase worker productivity.

Economic Theory

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.