A good economic model
A)does not include more than two variables.
B)includes only those features of the world that are needed for the purpose at hand.
C)describes all aspects of the economic world.
D)includes only features of the world that can be described numerically.
E)includes more than two variables but less than 10 variables.

Question

Quizplus · Accepted Answer

A good economic model should be simple enough to be understood and used, yet complex enough to capture the key features of the real world. Including only those features that are needed for the purpose at hand helps to keep the model simple and focused.

A Good Economic Model