With respect to how economists study the economy,which of the following statements is most accurate?
A)Economists study the past,but they do not try to predict the future.
B)Economists use "rules of thumb" to predict the future.
C)Economists devise theories,collect data,and analyze the data to test the theories.
D)Economists use controlled experiments in much the same way that biologists and physicists do.

Question

Quizplus · Accepted Answer

Economists use theories to explain how the economy works, collect data to test those theories, and analyze the data to draw conclusions. While economists may make predictions based on their theories and data, those predictions are not always accurate and are subject to change as new information becomes available. Rules of thumb may be used in certain situations, but they are not the primary method of analysis. Controlled experiments are difficult to conduct in economics due to the complexity of the economy and the inability to hold all other factors constant.

With Respect to How Economists Study the Economy,which of the Following