A model is used to explain economic behavior. Therefore
A)the assumptions must be complex while the model itself is simple.
B)the model must be complex.
C)the model must be simple.
D)the model can be either simple or complex so long as it explains economic behavior.

Question

Quizplus · Accepted Answer

The effectiveness of a model in explaining economic behavior is not dependent on its complexity alone. A model can be either simple or complex as long as it explains economic behavior. The key is that the model must accurately capture the relevant factors and relationships involved in the economic behavior being studied. The assumptions can also vary in complexity depending on the specific model and context.

A Model Is Used to Explain Economic Behavior