Positive Theory Refers to a Theory That

question 72

Multiple Choice

Positive theory refers to a theory that:

• A) explains how economic participants should act.
• B) describes how economic participants act.
• C) is optimistic.
• D) has been shown to have high explanatory power as a result of empirical testing.

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Definitions:

Terminate

To bring something to an end or conclusion, often referring to the cessation of contractual agreements or employment.

Specified Sales Quotas

Set amounts of sales that a salesperson or team is aimed to achieve within a certain time frame.

Breach

The act of violating a law, agreement, or code of conduct, often resulting in legal consequences.

Duty of Honesty and Fidelity

An ethical obligation requiring individuals, especially employees or agents, to act truthfully and loyally towards their employers or principals.