What Is the Best Test of an Economic Theory

question 145

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:

Feasibility Report

A report that evaluates a proposed action and shows whether or not it will work.

Hypothetical Questions

Queries that are based on imagined or theoretical scenarios, often used to explore possibilities or speculate outcomes.

Critical Incidents

Significant events or situations that have a profound impact, often used in the analysis of organizational operations or human behavior.

Technically Feasible

Refers to a project or proposal that is possible to implement or achieve with the existing technological resources and knowledge.