Which of the following statements about economic methodology is correct?

ECONOMICS

Multiple Choice

Which of the following statements about economic methodology is correct?

a.An economic law is a cause-and-effect relationship that has been verified by a controlled experiment.

b.The test of a theory's validity is its usefulness in explaining reality.

c.An economic law is a statement about group behavior that is based on the observed behavior of a single individual.

d.An economic law, because it is based on probabilities, can only be expected to be true about half the time.

e.Assumptions are ignored in the development of hypotheses.

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