A good theory should have the virtue of, or refutability. In other words, not only must a theory predict thing that we should observe if it is right, but it should predict things that we should observe if it is wrong. Theory X predicts that individuals will buy more of a particular good if their incomes rise. This is a theory that can be falsified.

A. True

B. False

Question

Business

Eden Zimmerman

4 November, 17:47

A good theory should have the virtue of, or refutability. In other words, not only must a theory predict thing that we should observe if it is right, but it should predict things that we should observe if it is wrong. Theory X predicts that individuals will buy more of a particular good if their incomes rise. This is a theory that can be falsified.

A. True

B. False

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Answers (1)

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Reeve · Answer 1

Answer: A. True

Explanation:

Theory X can be linked to the theory of supply and demand, which simply translates to individuals buying more of a particular good if their income rises. This theory led to the concept of "normal goods", this are simply the goods people buy more once their income increases.

This theory can be falsified using empirical observation: a study can be made, to verify if purchasing habits are directly linked or related to income or earnings.