Economists can use new technology to:

• A. collect and analyze large amounts of economic data more efficiently
• B. guarantee accurate predictions of future market outcomes
• C. eliminate the need for economic theory
• D. replace all traditional methods of economic research

Answer: (A)

Verified step by step guidance

1. Understand the role of technology in economics: Technology primarily serves as a tool to improve the efficiency and scope of economic research and data analysis.
2. Evaluate each option by considering what technology can realistically achieve in economics: For example, technology can help in data collection and analysis but cannot guarantee perfect predictions or eliminate the need for theory.
3. Recognize that economic theory remains essential because it provides the framework to interpret data and understand market behaviors, which technology alone cannot replace.
4. Acknowledge that while technology enhances traditional methods, it does not completely replace them; instead, it complements and improves these methods.
5. Conclude that the most accurate statement is that technology helps economists collect and analyze large amounts of economic data more efficiently, facilitating better research and decision-making.