With respect to how economists study the economy, which of the following statements is most accurate?
A)Economists study the past, but they do not try to predict the future.
B)Economists use "rules of thumb" to predict the future.
C)Economists devise theories, collect data, and analyse the data to test the theories.
D)Economists use controlled experiments in much the same way that biologists and physicists do.

Question

Quizplus · Accepted Answer

Economists use a scientific approach to study the economy, which involves devising theories, collecting data, and analyzing the data to test the theories. While economists may use historical data to inform their theories, their goal is to build models that can be used to predict future economic outcomes. They do not rely on mere "rules of thumb" or controlled experiments in the same strict sense as biologists or physicists.

With Respect to How Economists Study the Economy, Which of the Following