A Model or Theory in Economics Is

question 136

Multiple Choice

A model or theory in economics is:

• A) based mostly on value judgments.
• B) built using relevant observations, assumptions, and abstractions.
• C) only useful if it correctly portrays the real world and its complexities.
• D) useful only if it is based on normative economic statements.

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Definitions:

Humanistic Approaches

Ways of studying personality that emphasize self-actualization, where people seek to fulfill their potential through greater self-understanding.

Unconditional Positive Regard

A concept in client-centered therapy where the therapist offers the client complete support and acceptance.

Conditions of Worth

Standards imposed by others and internalized that a person believes they must meet to be valued or accepted.

Expectancy Theory

A theory in psychology that proposes an individual's motivation is related to their expected outcomes of a behavior and the value they place on those outcomes.