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:

Nile River

The longest river in Africa, flowing north through northeastern Africa to drain into the Mediterranean Sea.

Mediterranean Sea

An almost entirely land-enclosed sea that connects to the Atlantic Ocean, bordered by the Mediterranean region.

Delta

A delta is a landform at the mouth of a river where it spreads out into several branches before entering a larger body of water, typically formed from sediment deposition.

Tectonics

The branch of geology concerned with the structure and motion of the Earth's crust and large scale structural features such as mountains and ocean basins.