Which of the Following Statements About Economic Methodology Is Correct

question 68

Multiple Choice

Which of the following statements about economic methodology is correct?

• A)An economic law is a cause-and-effect relationship that has been verified by a controlled experiment.
• B)The test of a theory's validity is its usefulness in explaining reality.
• C)An economic law is a statement about group behavior that is based on the observed behavior of a single individual.
• D)An economic law, because it is based on probabilities, can only be expected to be true about half the time.
• E)Assumptions are ignored in the development of hypotheses.

Acknowledge the impacts of premenstrual syndromes on women's health.

Understand intrinsic and extrinsic motives for working.

Recognize the role of thought processes in belief formation and judgment.

Understand career development stages and theories.

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Definitions:

Revolving Credit Agreement

A legal financial contract between a lender and a borrower that allows the borrower to access funds up to a pre-approved credit limit, repay, and withdraw again.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for financing accounts receivable and inventories.

Financing

Financing is the process of providing funds for business activities, making purchases, or investing.

Commitment Fees

Fees charged by lenders to a borrower for an unused or untapped credit line, ensuring the lender retains availability of the funds.