Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A) The motivation to try to explain something is at the heart of building a theory.
• B) If a theory makes people uncomfortable then it should be discarded or ignored.
• C) In order for a theory to be valid it must be a perfect description of reality.
• D) Building a theory and evaluating a theory are the same thing.

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Definitions:

Gross Private Investment

The total amount of private sector spending on the acquisition of capital goods and additions to inventories.

Increased

A situation or condition where there is a rise or growth in quantity, size, number, or some other measure.

Decreased

A reduction or decline in value, amount, quality, or intensity.

Capacity Utilization Rate

A measure of how fully an industry or economy is using its total productive capacity.