Question

Quiz Instructions D Question 6 2 pts Which of the following is true? Real-world observations are used to formulate an economic theory, but this is of little use to policymakers. When a policymaker has an idea about how to advance economic growth, he or she will ask an economist to formulate a theory, and then this will be compared to real-world observations. Once an economic theory is developed, it is rarely tested against real-world observations. Real-world observations motivate economists to formulate theories about how economic growth evolves, and these theories are then used and reevaluated as new data become available. Economists formulate a theory and then sometimes try to verify the theory with real-world observations. Next • Previous

Answer 1

Answer:(d)

Economic theories are made based on the certain observations. These observations help to develop the pragmatic economic theory. Over the period of time, these theories are re- evolved.