Advantages of Experiments Include

question 10

Multiple Choice

Advantages of experiments include

• A) It is easier to determine whether people's choices are consistent with standard economic theory
• B) It is often easier to establish causality
• C) Researchers can double check their assumptions and conclusions by testing and debriefing subjects
• D) All of these

---

Definitions:

Retained Earnings

Retained earnings represent the cumulative amount of net income retained in the company rather than distributed to shareholders as dividends.

Dividends Payable

A financial accounting term referring to the declared dividends to be paid to a corporation's shareholders out of current or retained earnings.

Legal Capital Approach

A method of accounting that maintains capital at a certain legal minimum to protect creditors.

Ownership Equity

The owners' residual interest in the assets of a company after deducting liabilities, also known as shareholders' equity or stockholders' equity.