In Economics, the Function of Theories, Laws, and Hypotheses Is

question 32

Multiple Choice

In economics, the function of theories, laws, and hypotheses is to:

• A) prevent any misunderstanding of economic behavior.
• B) divide topics between microeconomics and macroeconomics.
• C) generate a complete and unchanging description of economic behavior.
• D) discover relationships between events that are important to economic behavior.

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Definitions:

Life Expectancy

The average period that an individual is expected to live, based on statistical averages.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its business activities.

Exchange Rates

The ratio at which one currency may be swapped for another, affecting global commerce and economic activities.

Investment in Martin

A specific financial investment made in a company or entity named Martin, denoting ownership or interest.