The Explanatory System That Explains How a Phenomenon Operates and Why

question 46

Multiple Choice

The explanatory system that explains how a phenomenon operates and why it operates as it does is a:

• A) Theory
• B) Hypothesis
• C) Principle of evidence
• D) Fact

---

Definitions:

Complete Information

A situation in economic theory where all parties have all the necessary information to make an informed decision.

Uncertainty

A situation or condition where there is a lack of certainty or predictability, often leading to difficulty in making decisions.

Classical Decision Model

Decision-making with complete information.

Limited Information

The condition of having incomplete or insufficient data or knowledge available to make decisions or understand a situation fully.