Which of the following best describes how economists test the empirical predictions of economic models? A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce. B) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take. C) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions. D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.

Question

Business

Jacob

4 November, 10:56

Which of the following best describes how economists test the empirical predictions of economic models? A) Economists survey individuals to learn about how people think through decisions about how much to purchase or to produce. B) Based on theories about thought processes, economists seek to determine which thought processes predominate in determining how a person decides what actions to take. C) Economists collect and analyze real-world observations of people's actions to discern if those actions accord with theories' predictions. D) Recognizing that people always do what they say they will do, economists rely exclusively on information gleaned from polls and surveys conducted by poll takers and market researchers.

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Heather Booth · Answer 1

The correct option here is C)

Explanation:

The correct answer is C) because Economics is nothing but empirical science and by empirical science it means that the economists will have to study the real world examples or evidences to create a support for their theory. And based on this, we can definitely say that from the given choices in the question option C) is definitely correct, they first collect the real world observations and then analyze them to see whether these actions are in accordance with their theory.