Which of the Following Best Describes How Economists Test the Empirical

question 271

Multiple Choice

Which of the following best describes how economists test the empirical predictions of economic models?

• A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce.
• B) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions.
• C) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take.
• D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.

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Definitions:

Top-Heavy Pension Plan

Describes a retirement plan in which a disproportionate amount of benefits are allocated to the company's higher-earning employees.

Pension Benefits

Retirement plan contributions made by employers for their employees, providing income upon retirement.

Key Employees

Key Employees are individuals who have a significant impact on the business's operations, usually possessing critical skills, knowledge, or abilities that are hard to replace.

Tuition Reimbursement Programs

Employer-provided benefits that cover the cost of employees' further education as an investment in workforce development.