A good economic model
A) utilizes only the two most important factors to analyze the problem under consideration.
B) generates statements that are incapable of refutation.
C) represents every detail of the real world.
D) yields usable predictions and implications for the real world.

Question

Quizplus · Accepted Answer

A good economic model should be able to yield usable predictions and implications for the real world. It is not feasible to represent every detail of the real world in a model and utilizing only two factors may oversimplify the problem. Generating statements that are incapable of refutation goes against the scientific method and the ability to test and improve models.

A Good Economic Model