Which of the following is NOT considered an ingredient to an economic model?
A) Assumptions
B) Logic
C) Hypotheses
D) Experience

Question

Quizplus · Accepted Answer

Experience is not considered an ingredient to an economic model because economic models are based on theoretical constructs rather than empirical data or personal experience. Assumptions, logic, and hypotheses are all critical components of economic models because they define the underlying principles upon which the model is built. Economic models are designed to provide a theoretical framework for understanding the behavior of markets, firms, consumers, and other economic actors, and they are used extensively for forecasting and policy analysis.

Which of the Following Is NOT Considered an Ingredient to an Economic