All of the following statements are characteristic of economic theories except:
A) theories may change over time as new evidence is discovered.
B) theories are the basis for economic principles.
C) theories are based upon abstract ideas and hence cannot be tested.
D) theories are tested by applying economic data to a model.

Question

Quizplus · Accepted Answer

Economic theories can indeed be tested through empirical evidence and data analysis, contrary to the assertion in option C that they are based on abstract ideas and cannot be tested. This testing is fundamental to the development and refinement of economic theories.

All of the Following Statements Are Characteristic of Economic Theories