Which of the Following Statements Is NOT Correct

question 16

Multiple Choice

Which of the following statements is NOT correct?

• A)Exposing them to empirical evidence can best test positive statements.
• B)Economic statements cannot be tested because human decisions involve free will.
• C)Economists test their theories by confronting the predictions of their theories with the evidence drawn from the real world.
• D)Economic predictions will be fulfilled when their underlying hypotheses conform to actual human behaviour.
• E)Normative statements cannot be tested by the scientific method.

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Definitions:

Compound Journal Entry

An accounting entry that involves more than two accounts, where there are multiple debits, multiple credits, or both.

Salvage Value

The appraisal of an asset’s market price at the exhaustion of its operational time.

Depreciation Rates

The percentage at which an asset's value is reduced to account for wear and tear over its useful life.

Units-of-activity Method

A depreciation method that allocates the cost of an asset over its useful life based on units of production or use, rather than passage of time.