Of the following, which is the most important characteristic of a successful theory?
A)the theory could never be refuted.
B)the theory allows us to predict behaviour reasonably accurately.
C)all assumptions on which the theory is based are true.
D)the theory adequately explains all economic behaviour.
E)the theory provides a basis for facts about economic behaviour.

Question

Quizplus · Accepted Answer

While all of the characteristics listed are desirable in a successful theory, the most important one is the ability to make reasonably accurate predictions about behavior. This allows the theory to be tested and applied in real-world situations, making it more useful and valuable. A theory that can never be refuted may be unfalsifiable and therefore unscientific, and it is impossible for all assumptions to be true or for a theory to explain all economic behavior. Providing a basis for facts is important, but it is not the most critical aspect of a successful theory.

Of the Following, Which Is the Most Important Characteristic of a Successful