An Economic Theory Seeks To

question 52

Multiple Choice

An economic theory seeks to:

• A) distort reality in order to improve forecasting ability.
• B) predict phenomena without explaining them.
• C) explain phenomena without predicting them.
• D) include every detail and interrelation among variables that are being analyzed.
• E) capture the important elements of the problem under study.

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Definitions:

Fair Market Value

The price at which property would sell for on the open market between a willing buyer and a willing seller, both having reasonable knowledge of all relevant facts.

Corporate Opportunity

A business opportunity that a company must offer to its shareholders or members before taking it for personal gain.

Duty of Disclosure

The legal obligation to reveal all material facts or information relevant to a transaction or decision-making process.

Duty of Care

A legal requirement that demands individuals or organizations to exercise a reasonable degree of attention and caution to avoid negligence that could harm others.