Which of the Following Terms Implies the Greatest Degree of Confidence

question 23

Multiple Choice

Which of the following terms implies the greatest degree of confidence in an economic generalization?

• A) hypothesis
• B) comparison
• C) theory
• D) anomaly

---

Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Shut Down

The process of ceasing operations or activity, either temporarily or permanently.

Average Variable Costs

The per unit cost of production that varies with the level of output, including elements like labor and raw materials.

Average Costs

Average costs represent the total costs of production divided by the total output or the cost per unit of output, often used to assess the efficiency of production processes.