A common approach that economists use to understand, explain and predict economic phenomena is to
A) form a theory or model.
B) conduct experiments in a science lab.
C) ask what people think.
D) examine people's thought processes.

Question

Quizplus · Accepted Answer

Economists commonly form theories or models to understand, explain and predict economic phenomena. This involves developing a set of assumptions and using logical deductions to create a simplified representation of economic behavior. This allows economists to make predictions and test their assumptions against real-world data to see if they hold up. Other approaches such as conducting experiments, asking people what they think, or examining people's thought processes may be used in certain circumstances, but they are not the primary approach used by economists.

A Common Approach That Economists Use to Understand, Explain and Predict