An economic model is:
A)a value judgment.
B)a fact.
C)built using theory.
D)built on correlations.

Question

Quizplus · Accepted Answer

An economic model is built using theory, which provides a framework for understanding the relationships between economic variables and the ways in which they interact with each other. It is not a value judgment or a fact, although it may be based on empirical evidence and statistical analysis. A model may use correlations to test its theoretical predictions, but it is not built solely on correlations.

An Economic Model Is