Asked by Chris Turner on May 07, 2024
Verified
Suppose an economist develops a theory that higher housing prices arise from lower gas prices. According to the scientific method, which of the following is the economist's next step?
A) Collect and analyze data
B) Go to a laboratory and generate data to test the theory
C) Publish the theory without testing it
D) Conduct a natural experiment to confirm the theory
Scientific Method
A method of research with defined steps that include experiments and careful observation to validate or disprove a hypothesis.
Housing Prices
The monetary value assigned to residential dwellings based on market conditions, location, and attributes of the property.
Natural Experiment
An observational study in which an event or a policy affects the variables of interest, allowing researchers to study outcomes without manipulating the study environment.
- Understand the methodology behind economic theories and the limitations of economic experiments.
Verified Answer
Learning Objectives
- Understand the methodology behind economic theories and the limitations of economic experiments.
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