Which of the following statements is true?
A) Models that economists use are perfect replicas of reality.
B) The scientific method used by economists is based on idealism and not empiricism.
C) Models help economists explain the past but do not help predict the future.
D) Testing with data enables economists to distinguish between good models and bad models.

Question

Quizplus · Accepted Answer

Models used by economists are simplified representations of reality and are not perfect replicas. The scientific method used by economists is based on both idealism and empiricism. Models can help economists both explain the past and predict the future to some extent. However, testing with data enables economists to distinguish between good models and bad models and improve their accuracy in predicting the future. Therefore, D is the correct statement.

Which of the Following Statements Is True