Which of the following statements is NOT correct?
A)Positive statements can best be tested by exposing them to empirical evidence.
B)Economic predictions cannot be tested because human decisions involve free will.
C)An economic model can be useful even if its underlying assumptions are unrealistic.
D)Economists test their theories by confronting the predictions of their theories with the evidence drawn from the real world.
E)Normative statements cannot be tested by the scientific method.

Question

Quizplus · Accepted Answer

Economic predictions can be tested even though they involve human decisions and free will. While human decisions can be unpredictable, they are still subject to economic incentives and can be analyzed and tested through empirical evidence.

Which of the Following Statements Is NOT Correct