A Common Approach That Economists Use to Understand, Explain and Predict

question 238

Multiple Choice

A common approach that economists use to understand, explain and predict economic phenomena is to

• A) form a theory or model.
• B) conduct experiments in a science lab.
• C) ask what people think.
• D) examine people's thought processes.

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Definitions:

Corporation

A legal entity distinct from its owners, possessing rights to own property, incur debts, sue and be sued.

Partnership

A legitimate business structure involving two or more people who jointly manage and benefit from the profits.

Generally Accepted Accounting Principles

A set of accounting standards and practices that are used in the preparation of financial statements in the United States.

Procedures

The official or established way of doing something, often detailed through a series of steps or actions to be taken.