Positive Theory Refers to a Theory That

question 72

Multiple Choice

Positive theory refers to a theory that:

• A) explains how economic participants should act.
• B) describes how economic participants act.
• C) is optimistic.
• D) has been shown to have high explanatory power as a result of empirical testing.

---

Definitions:

Tariffs

Taxes imposed by a government on imports or exports of goods.

Operations Management Strategy

A plan for designing, operating, and improving the processes that create and deliver goods and services.

Multinational Organizations

Corporations or enterprises that manage production or deliver services in more than one country, operating across national borders.

Indirect Costs

Expenses that are not directly attributable to a specific product or service but are necessary for the general operation of a business, such as utilities, rent, and administration.