An economist conducts a "natural experiment" by
A)choosing two groups of people - a control group and a test group - and providing special treatment for the test group.
B)using animal behavior to make inferences about human behavior.
C)using his or her own intuition to surmise what people will do in a given situation.
D)polling other economists to see if they believe a theory.
E) taking real-world data as it is given, and using it to test a theory.

Question

Quizplus · Accepted Answer

A natural experiment involves observing real-world data as it is given and using it to test a theory. This approach allows for the examination of events that have already occurred in a natural setting, rather than artificially manipulating variables within a controlled environment. This can provide more accurate and applicable results. Choice A describes an experiment involving a control group and a test group, which is not necessarily a natural experiment. Choice B suggests using animal behavior, which may not accurately represent human behavior. Choice C involves relying on one's intuition, which may not be objective or reliable. Choice D involves polling other economists, which is not a true experiment or natural experiment.

An Economist Conducts a "Natural Experiment" by