A good economic model

Question

Quizplus · Accepted Answer

A good economic model should include only those features of the world that are relevant to the specific purpose for which it is being used. Including more variables than necessary can lead to complexity and confusion, while attempting to describe every aspect of the economic world is unrealistic and impractical. Similarly, not all aspects of the economic world can be easily described numerically, and attempting to do so may result in oversimplification or inaccurate representations.

A Good Economic Model