Which of the following statements is FALSE?
A) Economists empirically test their models.
B) Economic models are not used to forecast.
C) An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied.
D) Economic models relate to behavior rather than to individual thought processes.
Correct Answer:
Verified
Q164: Economists develop models to
A) capture every detail
Q165: Explain what economists mean when they apply
Q166: Economics is an empirical science, which means
Q168: According to economic theory, how do people
Q169: "Rational, self-interested people would never end up
Q171: A simplified representation of the real world
Q172: Both the social sciences and the natural
Q174: Another term for "economic models" is
A) economic
Q175: What is meant by the term "incentives,"
Q177: "Economists assume people are selfish." Do you
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