Economic models, like other scientific models, are simplifications of reality. They are designed to capture the most important features of reality while abstracting away from the rest. However, economic models may be different in terms of their assumptions and the level of abstraction used.

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Economic Models

Question 55

Multiple Choice

Economic models

A) are constructed to mirror reality as closely as possible,and in this respect economic models are no different from other scientific models.
B) are constructed to mirror reality as closely as possible,and in this respect economic models are very different from other scientific models.
C) are simplifications of reality,and in this respect economic models are no different from other scientific models.
D) are simplifications of reality,and in this respect economic models are very different from other scientific models.

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