International economists cannot discuss the effects of international trade or recommend changes in government policies toward trade with any confidence unless they know
A) their theory is the best available.
B) their theory is internally consistent.
C) their theory passes the "reasonable person" legal criteria.
D) their theory is good enough to explain the international trade that is actually observed.
E) their theory accounts for China's unique position in international trade.

Question

Quizplus · Accepted Answer

In order for international economists to confidently discuss the effects of international trade and recommend changes in government policies toward trade, their theory must be good enough to explain the international trade that is actually observed. This means that their theory must be able to account for the complexities and nuances of real-world trade practices and outcomes. While the other answer choices describe important aspects of a sound economic theory, they do not specifically address the need for a theory to accurately explain real-world trade patterns.

International Economists Cannot Discuss the Effects of International Trade or Recommend