Choose the Statement That Best Characterizes an Economic Theory

question 144

Multiple Choice

Choose the statement that best characterizes an economic theory.A valid theory

• A)allows one to deduce a normative statement.
• B)appeals to the law of large numbers.
• C)generates a hypothesis that can predict future events.
• D)extrapolates from the past behaviour of a variable to predict its future course.
• E)allows one to prove irrefutably one's hypothesis.

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Definitions:

Discriminatory Price

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers without a corresponding difference in cost.

Clayton Act

An antitrust law in the United States that prohibits certain actions leading to anti-competitiveness, such as price discrimination and exclusive deals.

Mobile-Network Operator

A company that provides wireless communications services to mobile phone subscribers.

Conglomerate

A large corporation composed of diverse companies in various industries under a single corporate group, often achieved through mergers and acquisitions.