Sample Solution from
Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Chapter 1
Problem 1RQ
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To determine

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

Expert Solution

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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