Asked by Haddon Barrett on May 04, 2024
Verified
Which of the following statements about models is correct?
A) The more details a model includes, the better the model.
B) Because economic models omit many details, they allow us to see what is truly important.
C) Models cannot be used to explain how the economy functions.
D) Economic models complicate reality.
Economic Models
Simplified representations of complex economic processes, used to predict economic variables and understand their interactions.
Reality
The state of things as they actually exist, as opposed to how they may appear or may be thought to be.
- Understand the importance and purpose of economic models.
Verified Answer
DJ
Deena JefanMay 07, 2024
Final Answer :
B
Explanation :
Economic models simplify reality by omitting many details, which helps to focus on what is truly important for understanding and analyzing economic phenomena.
Learning Objectives
- Understand the importance and purpose of economic models.