Economic Theory

question 122

Multiple Choice

Economic theory

• A)is a deliberate simplification of factual relationships.
• B)seeks to disprove a hypothesis.
• C)is based mainly on assumptions.
• D)seeks to prove political ideals.

---

Definitions:

Economic Profits

Profits exceeding the total costs of inputs including opportunity costs, typically representing gains beyond the normal profit levels.

Economic Losses

Financial deficits incurred by businesses or individuals, often resulting from poor investment decisions or market downturns.

Profit-Seeking

The motivation or driving force behind individuals or companies to undertake activities that increase earnings and reduce costs, in order to maximize profits.

Major Oil Companies

Large, often multinational companies, engaged in the exploration, extraction, refining, and selling of oil and petroleum products.