Economists tend to judge a model based upon
A) the reality of its assumptions.
B) the accuracy of its predictions.
C) its simplicity.
D) its complexity.

Question

Quizplus · Accepted Answer

Economists generally judge a model based on its ability to make accurate predictions, as this is the primary goal of economic modeling. While the reality of assumptions, simplicity, and complexity may also play a role in evaluating a model, accuracy of predictions is typically the most important factor.

Economists Tend to Judge a Model Based Upon