An economic model can accurately explain how the economy is organized because it is designed to include every feature of the real world.

Question

Quizplus · Accepted Answer

Economic models are simplified abstractions of the real world and are not capable of including every feature of the real world. They are designed to highlight and analyze specific aspects of the economy while ignoring others. Therefore, economic models can provide insights and predictions, but they are not perfect representations of reality.

An Economic Model Can Accurately Explain How the Economy Is