Which of the Following Best Describes How Economists Test the Empirical

question 271

Multiple Choice

Which of the following best describes how economists test the empirical predictions of economic models?

• A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce.
• B) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions.
• C) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take.
• D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.

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Definitions:

Span of Control

Describes the number of subordinates that a manager or supervisor can effectively oversee, directly affecting management layers and organizational structure.

Matrix Departmentalization

An organizational structure that combines two or more types of departmentalization, often functional and product, to leverage the benefits of both.

Decentralization

The distribution of decision-making governance closer to the level of individual parts or locations within an organization, rather than concentrated at a central point of authority.

Senior Executives

Top-level managers or administrators in an organization responsible for making strategic decisions and overseeing the entire operation.