Going from Specific Facts or Observations to General Principles Is

question 318

Multiple Choice

Going from specific facts or observations to general principles is called __________ thought.

• A)creative
• B)deductive
• C)illogical
• D)inductive

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Definitions:

Long Run

A period in economics during which all inputs, including capital, are variable, allowing firms to adjust all aspects of production.

Economic Profits

Profits exceeding the opportunity costs of all inputs, indicating a firm is not only covering its costs but earning more than the next best alternative use of its resources.

Product Demand Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product demanded by consumers.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the economy to achieve a steady state of operations with no tendency for change.