To disentangle cause and effect, economists use economic models and use ________ to test the predictions of those models.
A)the what, how, and for whom questions
B)positive statements and normative statements
C)personal economic policy, business economic policy, and government economic policy
D)natural experiments, statistical investigations, and economic experiments
E)marginal benefit and marginal cost

Question

Quizplus · Accepted Answer

To disentangle cause and effect, economists usually use natural experiments, statistical investigations, and economic experiments. These methods allow economists to control certain variables and test the predictions of economic models. Option A, B, and E are important concepts used in economics but are not directly related to disentangling cause and effect. Option C is also not directly related to this concept but refers to different types of economic policies.

To Disentangle Cause and Effect, Economists Use Economic Models and Use