An economic theory requires,among other things,
A)a set of definitions of the variables to be considered.
B)that the set of predictions be correct.
C)a controlled laboratory setting in which the theory can be tested.
D)the use of endogenous variables only.
E)a set of value judgments to interpret the empirical evidence.

Question

Quizplus · Accepted Answer

A set of definitions of the variables to be considered is necessary for an economic theory to be well-defined and to allow for clear analysis and testing. The other options are not necessarily required for an economic theory.

An Economic Theory Requires,among Other Things