The distinguished economist Kenneth Bounding stated: “Theories without facts may be barren, but facts without theories are meaningless.” Explain what he meant
Please provide the best answer for the statement.
Economic theories are generalizations about the economic behavior of individuals and institutions. As generalizations or principles, they are abstractions and may not offer specific information about a particular issue that can be obtained from facts. Economic theories are barren in the sense that they offer a framework for thinking about the economic issue without a lot of the details about it. Having a lot of facts about an economic issue, however, is not very meaningful. Facts need to be arranged and organized if they are to have meaning and give insight into the issue. Economic theory offers that framework for organizing the factual information.
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Structural unemployment usually lasts ________ period of time ________ unemployment
A) a longer; than frictional B) a shorter; than frictional C) a shorter; than seasonal D) a shorter; than cyclical E) the same; as cyclical
A member of a cartel earns more profits by producing more than its quota and selling at a price higher than the cartel's price
Indicate whether the statement is true or false
In the Keynesian theory, an exogenous decrease in the demand for money shifts
a. the LM curve to the right. b. the LM curve to the left. c. the IS curve to the right. d. the IS curve to the left. e. neither the IS or LM curves.
In Figure 1 above if the economy were at Y1 then we would expect there to be:
A. no change in inventories. B. an increase in inventories. C. a reduction in inventories. D. an increase in consumption spending.