The process of observing real-world behavior, developing hypotheses, testing them against facts, then using the results to construct theories is called:
A) Opportunity cost estimation
B) The scientific method
C) Marginal analysis
D) Normative analysis

Question

Quizplus · Accepted Answer

The process described is the scientific method, which involves observation, hypothesis testing, and using evidence to generate theories. Opportunity cost estimation, marginal analysis, and normative analysis are all economic concepts, but do not encompass the full process described in the question.

The Process of Observing Real-World Behavior, Developing Hypotheses, Testing Them