Choose the Statement That Best Characterizes an Economic Theory

question 107

Multiple Choice

Choose the statement that best characterizes an economic theory.An economic theory

• A)is only useful if its underlying assumptions are realistic.
• B)will be useful as long as it is logically consistent.
• C)must be judged on its ability to explain and predict real-world phenomena.
• D)will predict more accurately if it contains a greater number of mathematical equations.
• E)will be useful only if all human behaviour is rational.

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Definitions:

Forecasted Sales

An estimate of the amount of revenue that a company expects to generate from the sale of goods or services in a future period.