Economic models are only applicable to free-market countries.
A) False. Economic models are applicable wherever there is scarcity.
B) True. Economic models are applicable only when private citizens are free to make their own decisions.
C) False. Economic models are applicable in all countries with more than one million people, regardless of political structure.
D) True. Economic models are only applicable when government is small relative to the rest of the economy.

Question

Quizplus · Accepted Answer

Economic models are applicable wherever there is scarcity, regardless of the political structure or government intervention in the economy. Therefore, economic models can be used to study and analyze economic systems in both free-market and non-free-market countries.

Economic Models Are Only Applicable to Free-Market Countries