If a theory's predictions are incorrect,
A)then economists always reject it.
B)then the data used was clearly faulty.
C)then economists will likely reduce their confidence in the theory.
D)then the model must be too simple.

Question

Quizplus · Accepted Answer

If a theory's predictions are incorrect, it means that the theory did not accurately describe the real world. Economists will likely reduce their confidence in the theory and may revise it or discard it altogether. This is because economists rely on empirical evidence to test and validate theories, and incorrect predictions indicate that the theory is not supported by the evidence.

If a Theory's Predictions Are Incorrect