A good economic theory:

Question

Quizplus · Accepted Answer

A good economic theory must be able to explain economic behavior and predict future outcomes accurately. Assumptions are necessary, but they must be realistic and supported by evidence. While past events can help inform economic theories, they cannot definitively prove them. The level of detail provided by a theory varies depending on the scope of the analysis and the specific questions it aims to answer. Mathematical calculations can be a useful tool, but they are not a requirement for a good economic theory.

A Good Economic Theory