Which of the Expressions Below Best Describes the Aim of Economic

question 259

Multiple Choice

Which of the expressions below best describes the aim of economic theory?

• A) to predict how people think about money
• B) to understand why money motivates some people more than others
• C) to predict the choices people will make
• D) to learn what we can do to prevent people from having unrealistic wants

---

Definitions:

Exogenous

Factors or variables that are external to the economic model and not determined within the model itself.

Frictional Unemployment

Frictional unemployment is short-term and voluntary unemployment that occurs when people are between jobs or entering the workforce for the first time, often due to personal choices or circumstances.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Skill Mismatch

A discrepancy between the skills offered by workers and the skills demanded by employers, which can lead to structural unemployment and inefficiency in the labor market.