An economic model is
A) a generalization that summarizes all the normative assumptions we make about a particular issue.
B) a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand.
C) a statement that describes how the world should be.
D) a collection of facts that describe the real world.

Question

Quizplus · Accepted Answer

Economic models are simplifications of reality that highlight the essential features of the economic issue being studied, excluding irrelevant details to focus on the core aspects of the problem.

An Economic Model Is