Which Statement Best Describes the Way Economists Study the Economy

question 8

Multiple Choice

Which statement best describes the way economists study the economy?

• A) Economists study the past, but do not try to predict the future.
• B) Economists use a probabilistic approach based on correlations between economic events.
• C) Economists devise theories, collect data, and then analyze the data to test the theories.
• D) Economists use controlled experiments much the same way a biologist or physicist does.

---

Definitions:

Shareholder's Agreement

A contract between the shareholders of a company that specifies their rights, privileges, protections and obligations.

Minority Shareholder

An owner of a minority interest in a corporation, typically holding less than 50% of the company's shares.

Unanimous Shareholders' Agreement

A contract among all shareholders of a company that may alter or remove the powers of the directors.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee's duty towards beneficiaries.