Which of the following best describes a model?
A) Data on student grade-point averages at a particular school.
B) A hypothetical economy used to analyze the effects of a tax cut.
C) The imposition of a higher gasoline tax to fund highway construction.
D) The assumption that most people would prefer large incomes to small incomes.

Question

Quizplus · Accepted Answer

A model, in the context of economics or social sciences, is a simplified representation of reality used to analyze and predict the behavior of complex systems. Choice B, a hypothetical economy used to analyze the effects of a tax cut, fits this description as it represents a simplified version of an economy constructed to study the potential impacts of fiscal policy changes. Choices A, C, and D do not represent models; they are examples of data, policy implementation, and an assumption, respectively.

Which of the Following Best Describes a Model