An economic model includes

Question

Quizplus · Accepted Answer

Economic models only include essential details in order to simplify complex economic phenomena and make them easier to understand and analyze. Marginal concepts may be part of the essential details, but not including all known details helps to increase the model's clarity and usability. Normative statements are not typically included in economic models, which aim to describe and explain economic behavior rather than prescribe what should be done.

An Economic Model Includes