Of the Following,which Is the Most Important Characteristic of a Successful

question 32

Multiple Choice

Of the following,which is the most important characteristic of a successful theory?

• A)the theory provides a basis for facts about economic behaviour
• B)the theory could never be refuted
• C)the theory adequately explains all economic behaviour
• D)all assumptions on which the theory is based are true
• E)the theory allows us to predict behaviour reasonably accurately

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Definitions:

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as buildings, machinery, and equipment.

Consumer Goods

Products that are sold directly to consumers for their personal or household use, typically including items like electronics, appliances, and clothing.

Capital Goods

Long-term assets such as machinery, buildings, and equipment purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs, assuming full and efficient utilization of resources.