An economic model
A)always has a mathematical foundation
B)can never be proven wrong
C)can be constructed for an individual economic unit but not for the economy as a whole
D)is a simplification of the real world
E)can be constructed for the economy as a whole but not for an individual economic unit

Question

Quizplus · Accepted Answer

Economic models are simplifications of the real world that are used to analyze and predict economic behavior. While they often have mathematical foundations, they can still be limited in their accuracy and may need to be adjusted over time. While models can be constructed for individual economic units, they are more commonly used to analyze the economy as a whole. It is important to remember that models are not infallible and can be proven wrong if they do not accurately reflect real-world data and trends.

An Economic Model