Which of the following statements is TRUE?
A) No economic model captures every detail that affects a problem.
B) Economic models always make accurate predictions about behaviors.
C) Economic models must fully reflect reality.
D) Economic models use economists' opinions with no use of data.

Question

Quizplus · Accepted Answer

Economic models are simplified representations of real-world situations, and therefore cannot capture every detail. However, they can still provide useful insights and predictions based on key assumptions and variables.

Which of the Following Statements Is TRUE