Asked by Raman Chahal on May 13, 2024
Verified
An economic model is
A) a tool of logic that assumes that if event A precedes event B,A must be the cause of
B) a simplified version of reality.
C) a tool of logic that assumes that the whole is greater than the sum of the parts.
D) a larger,more complicated version of reality.
Economic Model
A theoretical construct representing economic processes by a set of variables and a set of logical and/or quantitative relationships between them.
Simplified
Made easier to understand or do; reduced in complexity.
Reality
The state of things as they actually exist, as opposed to how they may appear or may be thought to be.
- Gain insights into the economic models and their use in simplifying and understanding real-world economic phenomena.
Verified Answer
AW
Angelica WesthouseMay 16, 2024
Final Answer :
B
Explanation :
An economic model is a simplified version of reality, used to explain and predict economic phenomena. It allows economists to isolate and analyze specific factors that influence economic behavior, while holding other factors constant. It is not a tool of logic that assumes causality or that the whole is greater than the sum of its parts.
Learning Objectives
- Gain insights into the economic models and their use in simplifying and understanding real-world economic phenomena.