What is the best test of an economic theory?
A) Its eloquence.
B) The plausibility of its assumptions.
C) Its ability to predict real-world events, patterns, and changes.
D) Whether it produces implications that are favored by the researcher.

Question

Quizplus · Accepted Answer

The best test of an economic theory is its ability to predict real-world events, patterns, and changes, as this demonstrates its practical applicability and validity.

What Is the Best Test of an Economic Theory