Question

Economic theories are:

A.are useless because they are not based on laboratory experimentation.
B.that are true for individual economic units are never true for the economy as a whole.
C. are generalizations based on hypotheses tested and supported with observed facts.
D. are abstractions and therefore of no application to real situations.

Answer 1

Economic theories are generalizations based on hypotheses tested and supported with observed facts. They are a tool for understanding complex, real-world issues and simplifying them down to their essentials. While economic theories may be abstractions, they have practical applications in real situations.

Step-by-step explanation:

Economic theories are generalizations based on hypotheses tested and supported with observed facts. They are a tool for understanding complex, real-world issues and simplifying them down to their essentials. While economic theories may be abstractions, they have practical applications in real situations.