The Process by Which Economists Test Hypotheses Against Facts to Develop

question 319

Multiple Choice

The process by which economists test hypotheses against facts to develop theories, principles, and models is called

• A) the economic perspective.
• B) the scientific method.
• C) policy economics.
• D) microeconomics.

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Definitions:

Dividend Yield

A metric showing the annual dividends a company distributes in comparison to its stock price.

Preferred Shareholders

Investors who own preferred shares in a company, usually entitled to dividends before common shareholders and with certain other financial rights.

Market Price

The current price at which an asset or service can be bought or sold in a market.

No-Par

Refers to stock issued without a par value, meaning it has not been assigned a nominal face value.