Economic models are
A)always based on laboratory methods similar to natural sciences.
B)a simplified representations of the real world.
C)used only in microeconomic analysis by households.
D)used only in macroeconomic analysis by business firms.

Question

Quizplus · Accepted Answer

Economic models are simplifications of the real world, used to understand and predict economic behavior. They do not always rely on laboratory methods and are used in both micro and macroeconomic analysis, not just by households or business firms.

Economic Models Are