What Theory Contends That People Have a Natural Capacity to Make

question 4

Multiple Choice

What theory contends that people have a natural capacity to make decisions about their lives?

• A)psychoanalytic
• B)behavioral
• C)humanistic
• D)social-cognitive learning theory

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing full adjustment to changes.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned through work.

Resource Prices

Resource prices refer to the cost associated with the inputs used in the production of goods and services, including raw materials, labor, and capital.

Expansionary Gap

A situation in macroeconomics where the actual production of goods and services exceeds the economy's potential output, often leading to inflation.