The usefulness of a model is determined by
A) whether it helps to explain or predict real world phenomena.
B) whether it possesses realistic assumptions.
C) how well it uses the ceteris paribus assumption.
D) how many of the possible relationships that exist are included in the model.

Question

Quizplus · Accepted Answer

The usefulness of a model ultimately comes down to whether it can help to explain or predict real world phenomena. While having realistic assumptions and using the ceteris paribus assumption can certainly enhance the usefulness of a model, the most important criterion is its ability to accurately reflect and forecast real world events. Similarly, the number of possible relationships included in the model is less important than whether the relationships that are included are relevant and accurate.

The Usefulness of a Model Is Determined by