Choose the Statement That Best Characterizes an Economic Theory

question 107

Multiple Choice

Choose the statement that best characterizes an economic theory.An economic theory

• A)is only useful if its underlying assumptions are realistic.
• B)will be useful as long as it is logically consistent.
• C)must be judged on its ability to explain and predict real-world phenomena.
• D)will predict more accurately if it contains a greater number of mathematical equations.
• E)will be useful only if all human behaviour is rational.

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Definitions:

Material Misrepresentations

False statements or omissions that are significant enough to influence an individual's decision-making process.

Insurance Contract

An agreement between an insurance company and an individual or entity, where the insurer agrees to compensate for specified losses in exchange for a premium.

Insurer

is an entity or company that provides insurance policies to individuals or organizations, offering financial protection or reimbursement against losses under the terms of an insurance contract.

Legal Representation

The act of having a lawyer or attorney conduct legal affairs and defend or advise in legal matters on one's behalf.