The scientific approach to economic inquiry involves
A)testing the reality of the assumptions of the model.
B)using only endogenous variables in economic models.
C)using only independent variables.
D)testing the predictions with empirical data.
E)choosing data that will support the predictions.

Question

Quizplus · Accepted Answer

The scientific approach to economic inquiry involves testing the predictions made by economic models with empirical data. This involves gathering data and using statistical methods to test the validity of the model's predictions, which allows economists to determine whether or not the model accurately reflects economic reality.

The Scientific Approach to Economic Inquiry Involves