An Economist at the University of Alberta in Edmonton Has

Multiple Choice

An economist at the University of Alberta in Edmonton has been asked to explain why the price of Albertan crude oil has fallen recently. Which steps should the professor take in order to assemble a scholarly answer?

A) Develop a hypothesis, test the proposition by engaging in empirical analysis, and examine the data to see if it fits with the facts.
B) Gather data on crude oil prices and seemingly unrelated variables in order to look for associations, then formulate a hypothesis based on those unexpected associations.
C) The oil industry is controlled by a cartel and the economist should gather data from other similarly structured industries to determine a theory.
D) Use a questionnaire to determine why residents of Alberta are not purchasing oil and create a theory based on this data.