An economic model that sometimes makes incorrect predictions may be used by economic decision makers:
A)under no circumstances.
B)only if its assumptions are detailed and realistic.
C)if it is mathematical and computerized.
D)if it is simple enough for a child to understand.
E)until a better model is developed.

Question

Quizplus · Accepted Answer

Economic models, even if they sometimes make incorrect predictions, can still be useful to decision makers until a better model is developed. The utility of a model does not solely depend on its current accuracy but also on its ability to inform decisions effectively until improved models are available.

An Economic Model That Sometimes Makes Incorrect Predictions May Be