What do good economic models do?
A) They often leave out important variables, causing serious errors.
B) They omit many details to allow us to see what is truly important.
C) They are designed to give a complete picture of a given relationship.
D) They leave economics to be interpreted in many ways by governments.

Question

Quizplus · Accepted Answer

Good economic models simplify complex relationships by omitting many details, allowing us to see what is truly important. However, they can also contain some level of abstraction and leave out important details, leading to potential errors or oversights. Therefore, option A is incorrect. Economic models are not designed to give a complete picture of a given relationship as economic relationships can be complex and multifaceted, so option C is also incorrect. Finally, economic models provide a framework for analysis and interpretation, but they do not necessarily leave economics to be interpreted in many ways by governments, so option D is also incorrect.

What Do Good Economic Models Do