Economic theories
A)can be used to help explain and predict economic behaviour.
B)cannot be tested because we cannot do economic "experiments".
C)must apply to all economies to be true.
D)are not useful because of the unrealistic assumptions they contain.
E)cannot help to predict future behaviour.

Question

Quizplus · Accepted Answer

Economic theories are developed to help explain and predict economic behavior. They are based on assumptions that are tested against real-world data and observations, and they can be used to form predictions about what might happen in the future. While it is true that economic experiments are not always possible, theories can still be tested against past events and data to see how accurate they are. Also, while theories may not apply to all economies, they can still be useful for understanding specific economies or markets. Finally, while some assumptions in economic theories may be unrealistic, this does not necessarily make them useless; rather, it just means that the assumptions need to be taken into account when using the theory to make predictions or analyze economic behavior.

Economic Theories