What is meant by saying that economics is an empirical science?
A) Economic theories will be tested by seeing how well they correspond to people's declared preferences.
B) Economic theories cannot be tested because there is no means of measuring economic variables with adequate precision.
C) Economic theories cannot be tested because economic variables change too quickly.
D) Economic theories will be tested by seeing how well they correspond to real-world phenomena.

Question

Quizplus · Accepted Answer

Saying that economics is an empirical science means that economic theories are tested by looking at real-world phenomena. This is because economics relies heavily on data and observation to support or disprove its theories. Option A is not completely accurate because people's declared preferences may not always correspond to their actual behavior. Option B is not correct because there are various methods to measure economic variables, although precision may vary. Option C is incorrect because economic variables do change quickly, but this does not necessarily render economic theories untestable.

What Is Meant by Saying That Economics Is an Empirical