Which Type of Reasoning Approach Relies on Observations to Make

question 9

Multiple Choice

Which type of reasoning approach relies on observations to make predictions about general principles?

• A) Inductive reasoning
• B) Logical reasoning
• C) Deductive reasoning
• D) Descriptive reasoning

---

Definitions:

Price Takers

Participants in a market who accept the market price as given and have no influence over it, typically because of the competitive nature of the market.

Legal Structure

The framework within which a business operates, including its designation as a corporation, partnership, sole proprietorship, or other legal entity.

Barrier To Entry

Factors that make it difficult for new competitors to enter a market, such as high start-up costs or regulatory hurdles.

Price-Control Legislation

Laws enacted by a government to regulate the prices charged for goods and services in the market, often to protect consumers.