--%>

Good economic policy requires good economic theory

Explain the statement: “Good economic policy requires good economic theory.”?

E

Expert

Verified

Economic theories are the foundation of economic policy.  Economic policy is a course of action intended to resolve a specific problem or further a nation’s economic goals.  Therefore, the action taken (the policy) is effective only if the underlying theory is correct.

   Related Questions in Business Economics

  • Q : What are the dependencies in U.S. and

    What are the dependencies in U.S. and World Trade?

  • Q : Explain how an increase in state

    Use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges.

  • Q : Heterodox cost theory Is Eiteman &

    Is Eiteman & Guthrie’s empirical evidence on the shape of the average total cost curve consistent along with heterodox cost theory?  Discuss it out.

  • Q : Government expenditures on goods and

    Explain Government expenditures on goods and services and transfer payments?

  • Q : Concepts of Economic system argues by

    For Economic system argues by Adam Smith relies heavily upon all the given concepts EXCEPT: (w) market expansion will be facilitated through capital accumulation. (x) prices will be driven to the lowest point at that production can ev

  • Q : Define the ability of goods by wealth

    According to Adam Smith nation's wealth is, not the gold this possesses, but somewhat it’s: (1) number of people. (2) capability to give goods for its people. (3) foreign investments. (4) domestic financial capital. (5) militar

  • Q : How can we compute operating leverage

    How can we compute operating leverage?

  • Q : Self-interested motivation to underpin

    Adam Smith’s perception which self-interested motives underpin even charitable activities through apparently selfless people appeared originally into his primary major book that was entitled: (1) Theory of Moral Sentiments [1755]. (2) Leviathan

  • Q : Managerial Economics Managerial

    Managerial Economics Meaning and definition Managerial economics general refer to the integration of economy th

  • Q : The Federal corporate income tax Use

    Use the circular flow model to confirm this assertion for a 2% reduction in the Federal corporate income tax.