To an economist, theory can be thought of as
A)abstraction for the sake of argument.
B)one person's opinion, which is just as good as another's.
C)another term for the description of a situation.
D)beliefs which cannot necessarily be verified.
E)explanation of mechanisms behind observed phenomena.

Question

Quizplus · Accepted Answer

Theory, in economics, refers to a set of explanations or models that explain the mechanisms behind observed economic phenomena. It is based on empirical evidence and logical reasoning, rather than personal opinions or beliefs. Thus, option E is the best choice.

To an Economist, Theory Can Be Thought of as