Instead of conducting laboratory experiments to generate data to test their theories,economists often
A)ask winners of the Nobel Prize in Economics to evaluate their theories.
B)argue that data is impossible to collect in economics.
C)gather data from historical episodes of economic change.
D)assume that data would support their theories.

Question

Quizplus · Accepted Answer

Gathering data from historical episodes of economic change is a common method used by economists to test their theories. This approach is known as empirical analysis, which involves examining real-world data to determine whether the outcomes match the predictions of economic models. While laboratory experiments may also be used in economics research, they are often impractical or impossible to conduct in the complex and varied environments of the real world. Therefore, gathering data from historical events is a useful way to test economic theories and generate new insights into how the economy functions.

Instead of Conducting Laboratory Experiments to Generate Data to Test