The basic purpose of economic models is to:
A)construct simplifying assumptions about the real world.
B)explain reality in all its complexity.
C)collect empirical data to support the facts.
D)construct situations where controlled experiments can be carried out.
E)explain and predict economic events.

Question

Quizplus · Accepted Answer

The basic purpose of economic models is to explain and predict economic events. Economic models are simplified representations of real world economic phenomena which help in understanding and forecasting economic behavior.

The Basic Purpose of Economic Models Is To