An economic model that sometimes makes incorrect predictions can be used by economic decision makers:
A) under no circumstances.
B) only if it assumes a positive correlation between the variables being analyzed.
C) if it is mathematical.
D) if it is simple enough for a child to understand.
E) until a better model is developed.

Question

Quizplus · Accepted Answer

While an economic model that sometimes makes incorrect predictions may not be perfect, it can still provide valuable insight for decision makers until a better model is developed. It is important for decision makers to be aware of the limitations of the model and to use it in conjunction with other sources of information.

An Economic Model That Sometimes Makes Incorrect Predictions Can Be