A theory is an abstraction used often by economists to
A)describe a problem.
B)keep all assumptions in their proper places.
C)explain why things work the way they do.
D)describe a hierarchical ordering of facts.
E)arrange variables into a graphical format.

Question

Quizplus · Accepted Answer

A theory is a systematic explanation for why and how economic phenomena work the way they do. While it may be used to describe a problem or arrange variables into a graphical format, its primary purpose is to explain. Additionally, while assumptions may be part of a theory, keeping them in their proper place is not the primary function of a theory. Finally, a theory may not necessarily describe a hierarchical ordering of facts.

A Theory Is an Abstraction Used Often by Economists to