An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model.
B) the model's ability to predict future economic activity.
C) the number of economists who have worked on the model.
D) the number of assumptions which the economist has made.

Question

Quizplus · Accepted Answer

The effectiveness of an economic model can be measured by its ability to accurately predict future economic activity.

An Appropriate Test of the Effectiveness of an Economic Model