This is the final stage in Piaget's theory of cognitive development (around age 12 and beyond), where individuals start thinking abstractly and are able to reason theoretically and hypothetically.
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Hypothetical-deductive reasoning: The ability to formulate hypotheses about how something might occur and then deduce the best way to solve it or predict its outcome.
Abstract thought: Thinking about things that are not concrete or based solely on what has been experienced directly. It includes concepts such as faith, trust, belief etc.