Economic models are:

Question

Quizplus · Accepted Answer

Economic models are built using assumptions, which are simplified representations of reality that help economists analyze economic phenomena. The models are not intended to replicate every detail of the real world, so choice A is incorrect. The usefulness of a model depends on its ability to accurately capture the key features of the phenomenon being studied, so choice B is also incorrect. Choice C is clearly incorrect, as economic models are not physical objects made of wood, plastic, or metal.

Economic Models Are