Positive Theory Refers to a Theory That

question 72

Multiple Choice

Positive theory refers to a theory that:

• A) explains how economic participants should act.
• B) describes how economic participants act.
• C) is optimistic.
• D) has been shown to have high explanatory power as a result of empirical testing.

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Definitions:

Demographic Characteristics

Quantifiable aspects of a population such as age, sex, income level, and education, often used in research to segment groups.

Customs

Established and traditional practices or behaviors that are specific to a culture, society, or community.

Beliefs

Beliefs are convictions or acceptances that something exists or is true, especially without proof, guiding behavior and thought processes.

Genetic Predisposition

An increased likelihood of developing a particular disease or condition based on a person's genetic makeup.