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Economists and other scientists utilize two types of assumptions in con- structing their theories and explanations about the world around us. The first type of assumption is simply a stipulation of definitions for economic terms and a statement of the "rules of the game." This kind of assumption dictates how an "economic explanation" is to be constructed and what terms are to be used in an economic explanation. This kind of assumption places boundaries on what the economist can do, and it distinguishes economic theories and explanations from the competing theories of psychology or sociology.
The economic theory of consumer behavior, for instance, assumes that individuals attempt to maximize their satisfaction or utility in the choices they make. This assumption is not, in itself, a testable statement about how consumers consciously make choices. It is, rather, a rule for the economist to follow when constructing explanations of the particular choices which consumers have made or will make. The only possible "test" of the assumptions that define the boundaries of a field of study is an examination of the "fruitfulness" of the research program based on these assumptions.
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