Ideal randomized controlled experiments in economics are
A)often performed in practice.
B)often used by the Federal Reserve to study the effects of monetary policy.
C)useful because they give a definition of a causal effect.
D)sometimes used by universities to determine who graduates in four years rather than five.

Question

Quizplus · Accepted Answer

Ideal randomized controlled experiments in economics are useful because they give a definition of a causal effect, which is crucial for understanding the impact of different policies and interventions. While randomized controlled experiments are not always feasible in economics due to practical and ethical constraints, they are considered the gold standard for establishing causality. The other answer choices are not accurate: randomized controlled experiments in economics are not often performed in practice, they are not commonly used by the Federal Reserve to study the effects of monetary policy, and they are not typically used by universities to determine graduation rates.

Ideal Randomized Controlled Experiments in Economics Are