What are the foundation stones from which economic models are built?

Question

Quizplus · Accepted Answer

Economic models are built upon a set of assumptions that define the behavior of individuals, firms, and governments within the economy. Economic policies and the legal system can influence the economy, but they are not the foundation of economic models. Statistical forecasts may be used to inform economic models, but they are not the foundation stones from which models are built.

What Are the Foundation Stones from Which Economic Models Are