Which of the following statements about economic models is true?
A)There is only one correct economic model.
B)All economic models are based on the same assumptions.
C)The purpose of economic models is to show how endogenous variables affect exogenous variables.
D)Economists use different models to address different economic phenomena.

Question

Quizplus · Accepted Answer

Economists use different models to address different economic phenomena because each model is designed to simplify and explain specific aspects of the economy, taking into account different assumptions and variables.

Which of the Following Statements About Economic Models Is True