An economic model based in positive economics should be judged
A) by the quality and quantity of its underlying assumptions.
B) by its ability to accurately capture and describe the many complex details of the real economy.
C) by the accuracy of its predictions rather than by the accuracy of its assumptions.
D) on its ability to incorporate the idiosyncratic factors that typically characterize human interactions.

Question

Quizplus · Accepted Answer

Positive economics focuses on objective and fact-based analysis, where the outcomes can be tested against real-world data. Thus, the accuracy of its predictions is the primary criterion for its evaluation, rather than the realism of its assumptions or the complexity and details it captures.

An Economic Model Based in Positive Economics Should Be Judged