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

Question

Quizplus · Accepted Answer

Each of the statements A, B, and C reflects a belief implicit in the position that evaluating a theory based on its predictive accuracy is important. A) suggests that accurate predictions indicate the theory might be a good explanation of reality. B) implies that theories with accurate predictions are likely to gain acceptance among others, presumably because their accuracy lends them credibility. C) suggests that even if a theory's assumptions seem unrealistic, its consistent predictive accuracy might indicate that these assumptions capture essential aspects of what the theory aims to explain.

Economists Often Evaluate a Theory in Terms of How Consistently