Economic models:
A)are useless because they are not based upon laboratory experiments
B)deal with a multitude of details
C)are generalizations of economic reality
D)are abstractions of reality and are, therefore, of no use to economists
E)are more effective the more complex they are

Question

Quizplus · Accepted Answer

Economic models are simplifications or generalizations of economic reality, designed to help understand, explain, and predict economic phenomena by focusing on relevant variables and relationships.

Economic Models