Economic theories are
A)useful because they are as exact as theories in the physical sciences
B)useless because they are based on abstractions
C)useful because they allow us to make predictions
D)too complex to understand because they include all of reality
E)useful in predicting events only if their assumptions are realistic

Question

Quizplus · Accepted Answer

Economic theories are useful because they allow us to make predictions based on certain assumptions and conditions. However, it should be noted that economic theories are not as exact as theories in the physical sciences due to the dynamic nature of economies and the various influencing factors involved.

Economic Theories Are