Theories developed by economists:
A) need 100 percent backing from fellow economists before being included in economics textbooks.
B) are not the result of laboratory research and are therefore useless.
C) are never applicable to real-world situations.
D) are only applicable to real-world situations when certain conditions exist.

Question

Quizplus · Accepted Answer

Economic theories are often based on assumptions and models that simplify reality. They are applicable to real-world situations when the conditions assumed in the models are met.

Theories Developed by Economists