When an economist assumes that the owners of firms are motivated only by the desire to maximize profits,the economist most likely believes that
A) it doesn't matter whether or not the assumption is descriptively accurate; what matters is whether a theory built on the assumption predicts well.
B) the assumption is descriptively accurate,since surveys have been taken and the owners of firms have admitted that their only objective is to maximize profits.
C) the assumption is inaccurate,since surveys have been taken and the owners of firms have admitted that they care about more than just profits.
D) individuals entering business are quite narrow in their personal objectives.
E) all people enter business for their own selfish gain.
Correct Answer:
Verified
Q24: Suppose economists at the World Bank discover
Q27: Suppose an individual wheat farmer's income is
Q29: A scientific prediction is
A)not testable.
B)a prophesy of
Q29: Economics is scientific because
A)economists routinely conduct controlled
Q30: If we seek to explain the number
Q31: Which of the following pairs of words
Q31: Suppose that a particular theory predicts that
Q32: Economists build models that abstract from the
Q34: The scientific approach to economic inquiry involves
A)choosing
Q35: Choose the statement that best characterizes an
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents