An economic model:
A) omits critical elements.
B) must be presented in mathematical terms.
C) is used to make predictions about the real world.
D) can never be proven wrong if its assumptions are realistic.
E) produces poor predictions if it includes assumptions.

Question

Quizplus · Accepted Answer

Economic models are used to make predictions about the real world, based on certain assumptions and variables. While they may not include all critical elements and can be presented in mathematical terms, their main purpose is to provide insight into real-world situations and outcomes. However, models can be limited by their assumptions and may not always accurately predict outcomes.

An Economic Model