Economists Often Evaluate a Theory in Terms of How Consistently

question 21

Multiple Choice

Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens.Implicit in this position is the belief that

• A) if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory is a good explanation of how things work.
• B) if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory will be accepted by others.
• C) if the theory's predictions are consistently accurate,then there is a fairly good chance that the theory's assumptions (even if they initially seem unrealistic)capture something that is essential to explaining what it is that the theory is trying to explain.
• D) all of the above

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Definitions:

Scientific Management

A management theory developed by Frederick W. Taylor, emphasizing efficiency, systematic planning, and standardized procedures.

Telephone Sales

A method of direct marketing in which salespeople use telephone calls to contact prospective customers and sell products or services.

Rationality

The quality of being based on or in accordance with reason or logic, often guiding decision-making processes.

Planning And Efficiency

The process of organizing activities in a way that maximizes productivity and minimizes waste or unnecessary effort.