Which of the Following Statements Is Correct

question 226

Multiple Choice

Which of the following statements is correct?

• A)Theory and hypothesis are interchangeable terms for the same thing.
• B)A hypothesis may result from a tested and confirmed theory.
• C)A theory may result from a tested and confirmed hypothesis.
• D)A hypothesis is a theory whose formulation relies on mathematics.

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Definitions:

Law Of Demand

The economic principle stating that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a specific price level.

Capital Market

The input/factor market in which households supply their savings, for interest or for claims to future profits, to firms that demand funds to buy capital goods.

Investment

New capital additions to a firm’s capital stock. Although capital is measured at a given point in time (a stock), investment is measured over a period of time (a flow). The flow of investment increases the capital stock.