Which of the following are we likely going to want to explain with an economic model?
i.Why people in the United States are fifty times richer than Ethiopians.
ii.What causes economic growth.
iii.What we think politicians should do with taxes.
A)i only.
B)ii only.
C)iii only.
D)i and ii.
E)all of the above

Question

Quizplus · Accepted Answer

Economic models are used to explain how and why economies grow, which would include explaining why the United States is wealthier than Ethiopia. They are also used to study factors that contribute to economic growth. However, economic models are not typically used to make normative recommendations about what politicians should do, which is the focus of option iii.

Which of the Following Are We Likely Going to Want