What Is the Best Test of an Economic Theory

question 31

Multiple Choice

What is the best test of an economic theory?

• A) The accuracy of the assumptions behind the theory.
• B) The ability of the theory to predict real-world events.
• C) The implications of the theory for current public policy.
• D) How much mathematical detail is behind the theory.

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Definitions:

Incisors

Chisel-shaped teeth of a mammal; adapted for biting and cutting food. Compare with canines, premolars, and molars.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion and absorption of food occurs.

Rugae

Folds, such as those in the lining of the stomach.

Gastric Juices

are a mixture of mucus, hydrochloric acid, and digestive enzymes produced by the stomach lining to digest food.