The definition of a model is 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) data adjusted for rational action.

Question

Quizplus · Accepted Answer

A model is a simplified description of reality used to understand and predict an economic event. Option A is incorrect because a model doesn't necessarily need to describe all variables affecting a situation. Option B is incorrect because a model can include negative analysis as well, and it doesn't necessarily analyze all variables of a situation. Option D doesn't make sense in the context of modeling.

The Definition of a Model Is A