What Would Lead an Economist to Conclude That Theory a Is

question 224

Multiple Choice

What would lead an economist to conclude that Theory A is superior to Theory B?

• A) Theory A predicts real-world events better than does Theory B.
• B) The assumptions underlying Theory A are more realistic than are the assumptions underlying Theory B.
• C) Theory A explains how people think, whereas Theory B only explains what they do.
• D) Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interest and acts accordingly.

Analyze economic behavior using basic supply and demand tools in the context of GDP.

Understand the concept and components of Gross Domestic Product (GDP) and its importance as an economic measure.

Distinguish between GDP, Gross National Product (GNP), Net National Product (NNP), and other income measures.

Recognize the circular-flow diagram and its components, including the roles of households and firms.

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Definitions:

Hypergeometric Distribution

A discrete probability distribution that describes the probability of a given number of successes in draws from a finite population without replacement.

Probability Of Success

The likelihood of an outcome occurring that is deemed a success in a given trial or experiment.

Student Body

The group of students collectively attending an academic organization.

Female Students

Refers to students who identify as female in educational settings.