Question

The goal of an economist who formulates new theories is to a. demonstrate that economists, like other scientists, can formulate testable theories. b. contribute to an understanding of how the world works. c. provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. d. provoke stimulating debate in scientific journals.

Answer 1

Answer: b. contribute to an understanding of how the world works.

Explanation: Economics is a branch of social sciences that studies the choices individuals and organizations make in using their limited resources to satisfy their unlimited wants. In essence, it is a study that aims to understand trade and industry as well as how people interact with these. Economists who formulate new theories work towards a better understanding of what motivates people, why they make the decisions they do and how the market reacts to the actions they take.