A good economic theory should capture as many details about real-world behavior as possible.

Name: A good economic theory should capture as many details about real-world behavior as possible.
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

While a good economic theory should explain real-world behavior, it is not expected to capture every single detail. Economic models simplify reality to better understand and predict behavior, which means some details must be abstracted away. The key is to strike a balance between explanatory power and simplicity.

A Good Economic Theory Should Capture as Many Details About