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 a careful observation of facts.
D) are abstractions and therefore of no application to real situations.

Question

Quizplus · Accepted Answer

Economic theories are generalizations based on a careful observation of facts. They are developed by economists through analyzing data and trends in the economy. While they may not be exact predictions of future events, they provide valuable insights and guidance for decision-making in the real world.

Economic Theories