Which Is More Important: Basic or Applied Research

question 39

Multiple Choice

Which is more important: basic or applied research?

• A) Basic research, because as Kurt Lewin said, "There is nothing so practical as a good theory"
• B) Applied research, because this type of research is involved in solving social problems
• C) Neither is that important compared with experimental research, which can establish causality.
• D) Both are important, because basic research allows for an understanding of psychological processes that can be used in applied research to solve social problems.

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Definitions:

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts or liabilities due within the next 12 months.

Horizontal Analysis

A financial analysis technique comparing historical data, such as revenues or profits, over a series of periods to identify trends or patterns.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, often used in financial markets or to analyze business data.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for.