Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A)a theory does not have to be correct to be useful.
• B)if there is a theory about something,it must be correct.
• C)it is impossible to assess the appropriateness of a particular theory.
• D)a theory can only be useful if it is correct.

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Definitions:

Free Riders

Individuals who benefit from resources, goods, or services without paying for them, often leading to under-provision or depletion of those resources.

Club Goods

Items that are non-rivalrous but excludable, meaning that one person's use does not reduce availability to others but access can be restricted, typically through a membership fee.

Private Goods

Private goods are products that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's consumption prevents another's.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be negative (costs) or positive (benefits).