Which of the following statements concerning economic models is FALSE?
A)Economic models must provide usable predictions.
B)Economic models are based on pure fact and no assumptions.
C)Economic models are tested empirically.
D)Economic models relate to how people behave.

Question

Quizplus · Accepted Answer

Economic models are not based solely on pure fact, but rather they involve simplifications and assumptions about how the economy works. These assumptions may not perfectly reflect reality but can still provide useful insights and predictions.

Which of the Following Statements Concerning Economic Models Is FALSE