Which of the following statements is true?
A) Testing with data is essential to developing a good theory.
B) The knowledge of economics complicates decision making.
C) Cost-benefit analysis can be applied only to limited economic decisions.
D) Economics is more of a theoretical subject with limited applications in the real world.

Question

Quizplus · Accepted Answer

Testing with data is crucial to developing a good theory because it helps in verifying the accuracy and reliability of the theory. Without testing, a theory cannot be validated and may not be applicable in the real world.  Option B is incorrect as knowledge of economics can provide insights and tools to make more informed decisions. Option C is incorrect because cost-benefit analysis can be applied to any economic decision, but the effectiveness of this method may depend on the specific context. Option D is incorrect because economics has numerous real-world applications and is used extensively in various fields, such as finance, policy-making, and international trade.

Which of the Following Statements Is True