What would lead an economist to conclude that Theory A is superior to Theory B?
A) Theory A predicts real-world events better than does Theory B.
B) The assumptions underlying Theory A are more realistic than are the assumptions underlying Theory B.
C) Theory A explains how people think, whereas Theory B only explains what they do.
D) Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interest and acts accordingly.

Question

Quizplus · Accepted Answer

The superiority of a theory is based on its ability to accurately predict real-world events. Therefore, if Theory A can do a better job of predicting events than Theory B, economists would conclude that Theory A is superior.

What Would Lead an Economist to Conclude That Theory a Is