Economic theories
A) are useless because they are not based on laboratory experimentation.
B) that are true for individual economic units are never true for the economy as a whole.
C) are generalizations based on hypotheses tested and supported with observed facts.
D) are abstractions and therefore of no application to real situations.

Question

Quizplus · Accepted Answer

Economic theories are generalizations based on hypotheses tested and supported with observed facts. They provide a framework to understand and analyze economic trends and behavior. Although they may not perfectly apply to every individual situation, they provide valuable insights and guidance for decision-making in the real world.

Economic Theories