In order for an economic model to be valid:
A) all people must explicitly mimic the model.
B) most people must explicitly mimic the model.
C) most people must act as if they explicitly mimic the model.
D) it must gain professional acceptance.

Question

Quizplus · Accepted Answer

DFor an economic model to be valid, it does not require everyone or even most people to explicitly mimic the model. Instead, it is sufficient if most people act as if they are following the model (C), indicating that their aggregate behavior aligns with the model's predictions. Additionally, professional acceptance (D) is crucial for a model's validity, as it signifies that the model has been scrutinized and deemed valuable by the academic or professional community.

In Order for an Economic Model to Be Valid