Pearson eText Microeconomics -- Instant Access (Pearson+)
Pearson eText Microeconomics -- Instant Access (Pearson+)
9th Edition
ISBN: 9780136879572
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON+
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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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