Asked by lauren delancellotti on Jun 30, 2024
Verified
A good economic theory:
A) approaches reality in all its complexity.
B) involves so much distortion of reality that it is worthless.
C) focuses on the unique aspects of each situation.
D) involves some simplification of reality.
E) bears no relation to reality.
Economic Theory
A set of principles and concepts that explain the functioning of economies, guiding the analysis of economic policies and practices.
Reality
The state of things as they actually exist, as opposed to an idealistic or notional idea of them.
Simplification
The process of making something less complex or easier to understand, often by reducing the number of components or operations involved.
- Pinpoint the qualities that define a robust economic theory.
Verified Answer
KR
Kevin ReynaJun 30, 2024
Final Answer :
D
Explanation :
A good economic theory involves some simplification of the complex reality to make it manageable and understandable but still provides insights that are relevant and useful in real-world scenarios.
Learning Objectives
- Pinpoint the qualities that define a robust economic theory.