Economic Theories

question 206

Multiple Choice

Economic theories

• A) are useless because they are not based on laboratory experimentation.
• B) that are true for individual economic units are never true for the economy as a whole.
• C) are generalizations based on hypotheses tested and supported with observed facts.
• D) are abstractions and therefore of no application to real situations.

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Definitions:

Beta

A measure of a security's volatility in relation to the overall market, indicating the security's risk compared to the market average.

Sensitive

Quick to detect or respond to slight changes, signals, or influences.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, often used in finance to represent the volatility of an investment.

Correlation

A numeric value showing how much two or more variables change in connection with one another.