Economic models are most useful in
A) predicting changes in one variable due to a change in one or more other variables.
B) predicting the direction of the stock market.
C) explaining the future with the past.
D) generating untestable hypotheses.

Question

Quizplus · Accepted Answer

Economic models are designed to show the relationship between different variables and how changes in one variable can affect the others. Therefore, they are most useful in predicting changes in one variable due to a change in one or more other variables.

Economic Models Are Most Useful in