Economic models
A)are used to explain how people think.
B)are used to explain how people behave.
C)are essential representations of the real world.
D)are never used for making economic projections or predictions.

Question

Quizplus · Accepted Answer

Economic models are established to provide a theoretical framework for understanding how individuals, firms, and other economic agents behave in certain situations, based on certain assumptions. They are used to explain why and how people make certain economic decisions, react to changes in prices, and respond to market forces.

Economic Models