Which of the following is true of economic models?
A)Models are too theoretical to be applicable in real world decisions.
B)Models are not useful because there is too much uncertainty to ever forecast outcomes accurately.
C)Models are simplified descriptions of processes,relationships,or other phenomena.
D)Models describe real world situations in complete detail.
E)Models are not useful because they do not take into account complicating and less important features of a problem.

Question

Quizplus · Accepted Answer

Economic models are simplified descriptions of processes, relationships or other phenomena. They are not meant to describe real world situations in complete detail, but rather provide a framework for understanding and analyzing economic phenomena. While they may not take into account every complicating or less important feature of a problem, they are still useful tools for making informed economic decisions.

Which of the Following Is True of Economic Models