Why do economists use economic theory in their work?
A) to express their normative values
B) to develop imaginative and interesting stories
C) to predict the behaviour of a specific economic decision maker after an economic change
D) to predict the average behaviour of a group of similar economic decision makers after an economic change

Question

Why do economists use economic theory in their work?  
A) to express their normative values 
B) to develop imaginative and interesting stories 
C) to predict the behaviour of a specific economic decision maker after an economic change 
D) to predict the average behaviour of a group of similar economic decision makers after an economic change

Quizplus · Accepted Answer

Economists use economic theory to predict the average behavior of a group of similar economic decision makers after an economic change. This helps them in understanding how the economy will respond to various changes and make informed policy decisions. Economic theory is based on assumptions about human behavior, and it provides a framework for analyzing complex economic phenomena. It helps economists to develop models and test hypotheses about how the economy works. Economic theory is an essential tool for economists and policymakers, as it allows them to make informed decisions based on empirical evidence and sound economic principles.

Why Do Economists Use Economic Theory in Their Work