An economic theory requires,among other things,
A)a set of definitions of the variables to be considered.
B)a controlled laboratory setting in which the theory can be tested.
C)that the set of predictions be correct.
D)a set of value judgments to interpret the empirical evidence.
E)the use of endogenous variables only.

Question

Quizplus · Accepted Answer

A set of definitions of the variables to be considered is necessary for an economic theory as it helps to clearly identify and measure the variables involved in the theory.

An Economic Theory Requires,among Other Things