Suppose economists at the World Bank develop a theory with a prediction that increased levels of foreign aid lead to increases in per capita GDP in the recipient developing countries.They find empirical evidence that is consistent with this theory.The economists are able to conclude that
A)the theory is valid,but should be subjected to continued scrutiny.
B)the theory has been proven correct.
C)the theory is always reliable.
D)the evidence is rejected by the theory.
E)the assumptions used in the theory have been proven correct.

Question

Quizplus · Accepted Answer

The economists can conclude that the theory is valid based on the empirical evidence they found. However, they should subject the theory to continued scrutiny to ensure its reliability and validity in different contexts and time periods. No economic theory can be proven correct beyond doubt, as economic phenomena are complex and influenced by multiple factors. Additionally, the economists cannot conclude that the theory is always reliable based on one set of empirical evidence. The evidence is not rejected by the theory, as it is consistent with it, and the assumptions used in the theory are not necessarily proven correct by the empirical evidence.

Suppose Economists at the World Bank Develop a Theory with a Prediction