Questions for Theorists

From Econjobrumors, on a thread on the worst econ fields to be a candidate in:

From the hiring side: The problem I see with many pure theorists (i.e. those who do not use any data) is the lack of connection between the research and any real-world issues. A lot of job applicants to my department and graduate students in my department have a difficult time answering (a) why is this relevant/important?, and (b) how would I know if you were wrong? If you are a theorist, you'll do yourself a favor if you can answer those questions.