Why Do Economists Test Their Hypotheses

question 222

Multiple Choice

Why do economists test their hypotheses?

• A) to see whether people are motivated by self-interest
• B) to see whether their models predict the choices people will make
• C) to determine whether government policies have effectively achieved their goals
• D) to learn what people are thinking when they make the choices they do

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Definitions:

Voucher System

A control mechanism in accounting to ensure that every payment is properly authorized and recorded.

Liability

A company’s legal financial debts or obligations that arise during the course of business operations.

Cash Payment

A transaction where payment for goods or services is made immediately using cash or a cash equivalent, as opposed to credit.

Depositor's Bank Account

A bank account held by an individual or entity, reflecting the current balance of their deposited funds.