According to the economic way of thinking, when would an economist consider a theory to be...
According to the economic way of thinking, when would an economist consider a theory to be valid?
| a. |
when the implications of the theory are in favor of the current public policy that you support. |
|
| b. |
only after carefully testing the theory using real world data or empirical evidence, controlling for other factors that could influence the test, with the results of the test confirming that theory. |
|
| c. |
when its repeated on the news, social media, and by the people you know. |
|
| d. |
when the assumptions behind the theory are accurate. |
Homework Answers
Option B is correct since a theory is valid only when it is tested completely with real life scenarios ,changing variables and the output is similar to what was observed in the real case
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