A good economic model
A) is as simple as possible,including only necessary details
B) is as complex as possible,including many details
C) represents reality as concretely as possible
D) tries to be as detailed as the reality it is describing
E) is very detailed regardless of its purpose

Question

Quizplus · Accepted Answer

A good economic model should be simple, clear and able to capture the most important aspects of the real world while at the same time being easy to understand and communicate. An overly complex model can be confusing and difficult to work with, and risks losing sight of the big picture. Thus, it's important to strike a balance between simplicity and accuracy.

A Good Economic Model