Which Term Refers to the Ability to Begin with Specifics

question 122

Multiple Choice

Which term refers to the ability to begin with specifics, such as accumulated facts, and then make general conclusions?

• A) hypothetical reasoning
• B) inductive reasoning
• C) deductive reasoning
• D) adolescent egocentrism

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Definitions:

Substitution Effect

The change in consumption that occurs when a price change for one good causes a consumer to replace that good with a more or less expensive substitute.

Price Change

An alteration in the cost of goods or services in the market.

Income

The amount of money received by an individual or entity, usually in exchange for labor or services, or through returns on investments.

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness derived by a consumer from consuming goods and services.