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

question 15

Multiple Choice

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

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

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Definitions:

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or financial instruments.

Bystanders

Individuals who are present at an event or incident but do not take part in it, often discussed in the context of social psychology and behavior.

Altruistic Behavior

Actions taken by an individual that are intended to help or benefit another person or group of people without the expectation of reward.

Increases

Situations in which there is a rise in number, volume, significance, or magnitude of a particular variable or condition.