Asked by
Reina Maldonado-Rico
on Nov 11, 2024Verified
A good theory seeks to:
A) distort reality in order to improve forecasting ability.
B) predict phenomena without explaining them.
C) explain phenomena without predicting them.
D) confront reality in all its complexity by focusing on the unique aspects of each phenomenon.
E) simplify a complex reality.
Good Theory
A well-substantiated explanation of some aspect of the economic world that can predict outcomes and withstand empirical testing.
Forecasting Ability
The capability to predict future trends, events, or behaviors based on past and current data.
Complex Reality
The concept that reality is composed of many interacting components that can be difficult to fully understand or predict.
- Determine the attributes of a sound economic theory.
Verified Answer
IR
Learning Objectives
- Determine the attributes of a sound economic theory.