Which of the following is true?
A) Economists formulate a theory and then sometimes try to verify the theory with real-world observations.
B) Real-world observations are used to formulate an economic theory,but this is of little use to policymakers.
C) Once an economic theory is developed,it is rarely tested against real-world observations.
D) When a policymaker has an idea about how to advance economic growth,he or she will ask an economist to formulate a theory,and then this will be compared to real-world observations.
E) Real-world observations motivate economists to formulate theories about how economic growth evolves,and these theories are then used and reevaluated as new data become available.

Question

Quizplus · Accepted Answer

This is the most accurate description of the relationship between real-world observations and economic theory. Economists often use data and observations to formulate theories about economic phenomena, and these theories are frequently refined and reevaluated as new data become available. Policymakers may also ask economists to formulate theories to guide policymaking, but these theories are typically tested against real-world observations to assess their accuracy and usefulness.

Which of the Following Is True