Economic models
A)are not complicated because the behavior they describe is not complicated.
B)require either algebra or graphs.
C)are complicated because human behavior is complicated.
D)are simplifications of the phenomena they attempt to explain.
E)need to be the same as the phenomena they describe.

Question

Quizplus · Accepted Answer

Economic models are simplifications of the real world phenomena they attempt to explain. They are created to capture the most essential features of a complex reality and help us understand the relationships between different economic variables. While human behavior can be complicated, economic models don't necessarily have to be complicated to be effective. They can be simple or complex depending on the specific question being addressed. Algebra and graphs are common tools used to build economic models, but they are not the only ones.

Economic Models