What is the best test of an economic theory?

A) Its eloquence.
B) The plausibility of its assumptions.
C) Its ability to predict real-world events, patterns, and changes.
D) Whether it produces implications that are favored by the researcher.

Economic Theory

A set of principles and models that attempts to explain how economies operate and how economic agents interact.

Real-world Events

Occurrences or incidents that take place in the actual world as opposed to theoretical or artificial environments.

Plausibility

The quality of seeming reasonable or probable, often used to describe theories, arguments, or scenarios that are believable based on evidence or logic.