If an important assumption is omitted from an economic model,
A)the model's predictions will only be accurate 50% of the time.
B)the model's predictions may be inaccurate.
C)the model will not predict anything.
D)the model is not simple enough.

Question

Quizplus · Accepted Answer

Omitting an important assumption from an economic model can lead to inaccurate predictions, since the model is not taking into account all relevant variables and factors.

If an Important Assumption Is Omitted from an Economic Model