Which of the following statements is true of theories in eco

Which of the following statements is true of theories in economics? Theories in economics A. are developed to explain observed phenomena free from restrictions imposed by a set of assumptions O B. are used to construct models from which quantitative predictions can be made. O C. are never tested against observation. O D. Both A and B are correct. O E. None of the above.

Solution

Both A and B are right. Remember assumptions simplify process of drawing conclusions but they are not always necessary. Theories are also used to construct models. So S is right answer. Please like answer