A model is defined as a:
A) description of all variables affecting a situation.
B) positive analysis of all variables affecting an event.
C) simplified description of reality to understand and predict an economic event.
D) prediction based on historical evidence.

Question

Quizplus · Accepted Answer

A model is a simplified representation of reality used to understand and predict economic events. It is not a description of all variables affecting a situation or a positive analysis of all variables. While historical evidence may be used in the development of a model, a model itself is not a prediction based solely on historical evidence.

A Model Is Defined as A