How Does an Economist Define a Good Economic Theory

question 189

Multiple Choice

How does an economist define a good economic theory?

• A) an abstraction from reality useful for explaining but not predicting behaviour (since theories are too simplistic)
• B) an opinion that can be tested against economic data
• C) an abstraction for the sake of argument
• D) a statement or relationship that is used to explain and predict human behaviour

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Definitions:

Employee Participation

Refers to the involvement of employees in decision-making processes and contributing to the improvement of organizational practices.

Tasks Over People

A management approach that prioritizes work and tasks achievement over attending to the well-being and needs of employees.

Authority-obedience Manager

A management style characterized by a primary focus on efficiency and task results, often at the expense of employee relationships and morale.

Efficiency

The ratio of useful output to total input, indicating how effectively resources are utilized to achieve a goal.