The Notion That If Two Theories Can Equally Explain and Predict

question 76

Multiple Choice

The notion that if two theories can equally explain and predict the same phenomenon, then the simpler one is the preferred theory is referred to as the law of __________________.

• A)least complexity
• B)parsimony
• C)consistency
• D)simplicity

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Definitions:

Unfavorable Exchange Rates

Exchange rates that result in a decrease in the home currency value compared to a foreign currency, potentially leading to higher costs for importing goods and services.

Location Decision

The process of choosing a geographical location for a company's operations, considering factors like market access, costs, and legal regulations.

Savings

A reduction in expenditure or cost, often set aside for future use.

Labour Cost

The total expense incurred by employers for the salaries, wages, and benefits of their employees.