Which of the following is an important characteristic of good economic models?
A) They deal with the economy as a whole.
B) They use the language of mathematics.
C) They are flexible in their designs.
D) They avoid making predictions.
E) They are as complex as the realities they represent.

Question

Quizplus · Accepted Answer

Good economic models should be flexible in their designs so that they can be modified or adapted to reflect changing economic conditions and new data. Option A is incorrect because economic models can focus on specific aspects of the economy and do not have to deal with the economy as a whole. Option B is incorrect because while mathematics can be useful in economic modeling, it is not essential. Option D is incorrect because economic models frequently make predictions or forecasts, albeit with varying degrees of accuracy. Option E is incorrect because good economic models should aim to simplify complex real-world phenomena without sacrificing accuracy or essential features.

Which of the Following Is an Important Characteristic of Good