Which of the following statements about economic methodology iscorrect?
A)An economic law is a causeandeffect relationship that has been verified by a controlled experiment.
B)The test of a theory's validity is its usefulness in explaining reality.
C)An economic law is a statement about group behavior that is based on the observed behavior of a
Single individual.
D)An economic law, because it is based on probabilities, can only be expected to be true about
Half the time.
E)Assumptions are ignored in the development of hypotheses.

Question

Which of the following statements about economic methodology iscorrect?
A)An economic law is a cause­and­effect relationship that has been verified by a controlled experiment.
B)The test of a theory's validity is its usefulness in explaining reality.
C)An economic law is a statement about group behavior that is based on the observed behavior of a
Single individual.
D)An economic law, because it is based on probabilities, can only be expected to be true about
Half the time.
E)Assumptions are ignored in the development of hypotheses.

Quizplus · Accepted Answer

The statement that the test of a theory's validity is its usefulness in explaining reality is correct. Economic laws are often based on observed patterns in group behavior, but they are not necessarily based on controlled experiments. Economic laws are also not based on the observed behavior of a single individual. Economic laws are not probabilistic, meaning they are not only true about half the time. Finally, assumptions are not ignored in the development of hypotheses; rather, hypotheses are based on assumptions.

Which of the Following Statements About Economic Methodology Iscorrect