Which of the following statements about economic models is true?
A)There is only one correct economic model.
B)All economic models are based on the same assumptions.
C)The purpose of economic models is to show how endogenous variables affect exogenous variables.
D)Economists use different models to address different questions.

Question

Quizplus · Accepted Answer

Economists use different models to address different questions. Economic models can vary greatly depending on the specific question being asked and the assumptions being made. Therefore, there is no one correct economic model and all models are not based on the same assumptions. The purpose of economic models is generally to simplify the real-world economy in order to better understand and analyze its behavior.

Which of the Following Statements About Economic Models Is True