To test their theories, economists usually have to
A)set up careful laboratory experiments with all variables controlled.
B)first examine theory and what has happened in the past in the real world.
C)use only models that have a proven record of success.
D)anticipate every factor with 100 percent accuracy.

Question

Quizplus · Accepted Answer

Economists typically rely on historical data and real-world events to test their theories. While they may use models and simulations, they generally cannot control all variables in the way that a laboratory experiment can. Predicting every factor with 100 percent accuracy is impossible in any field, including economics.

To Test Their Theories, Economists Usually Have to