EBK PEARSON ETEXT MICROECONOMICS -- ACC
EBK PEARSON ETEXT MICROECONOMICS -- ACC
9th Edition
ISBN: 9780136850892
Author: Rubinfeld
Publisher: VST
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Chapter 1, Problem 1RQ
To determine

To discuss why a theory that cannot be evaluated empirically is not a good theory.

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Explanation of Solution

Theories are the basis for making predictions. Generally, a theory cannot be used for making valid predictions in real life without testing and verification. Validation of the theory increases the confidence of its prediction. A good theory is one that cannot be refuted by an empirical, data-oriented study.

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