Economic theories are:
A) useful because they are as precise as theories in the physical sciences.
B) useless because they are based on abstractions.
C) useful because they allow us to make predictions.
D) complex to understand because they do not make assumptions.
E) useful in predicting events only if their assumptions are realistic.

Question

Quizplus · Accepted Answer

Economic theories are useful because they allow us to make predictions about how markets and economies will behave, based on assumptions about individual behavior and other factors. This can be valuable for decision-making in business, government, and personal finance.

Economic Theories Are