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Which of the Following Statements Is FALSE

Question 101

Multiple Choice

Which of the following statements is FALSE?


A) Assumptions are conditions held to be true in a model.
B) A model is a setting within which an economic theory is presented.
C) Any time a hypothetical situation is created in a model, the model is invalid.
D) One problem with model building is that important variables may be excluded from the model.

Correct Answer:

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