Using the scientific method to approach an economic issue involves
A)finding the correct data to validate the theory.
B)considering stock and flow variables.
C)the use of controlled experiments to confirm the evidence presented by the data.
D)building a theory to explain the issue and then determining if the theory can be refuted by evidence.
E)formulating normative statements about it.

Question

Quizplus · Accepted Answer

The scientific method in economics involves building a theory to explain an issue and then testing the theory with evidence to determine if it can be refuted. This process does not involve controlled experiments like in the natural sciences, or formulating normative statements about the issue. It may involve finding appropriate data to test the theory and considering stock and flow variables as part of the process.

Using the Scientific Method to Approach an Economic Issue Involves