The Goal of an Economist Who Formulates New Theories Is

question 180

Multiple Choice

The goal of an economist who formulates new theories is to

• A)provide an interesting framework of analysis,whether or not the framework turns out to be of much use in understanding how the world works.
• B)provoke stimulating debate in scientific journals.
• C)contribute to an understanding of how the world works.
• D)demonstrate that economists,like other scientists,can formulate testable theories.

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Definitions:

Held-to-maturity Security

A debt security that a company has the intent and ability to hold until its maturity date, recorded at amortized cost.

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Consolidation Method

An accounting technique used by firms to combine the financial statements of subsidiaries with those of the parent company to present as one entity.

Equity Securities

Financial instruments like stocks that represent ownership interest in a company or rights to acquire such an interest.