The importance of an economic model is that it allows us to:
A)build a complex and accurate model of how the economy should work.
B)build an accurate mathematical model of every aspect of the economy.
C)focus on the effects of only one change at a time.
D)avoid opportunity costs.

Question

Quizplus · Accepted Answer

Economic models allow us to isolate the effects of one change at a time, which is important for analyzing the impact of different policies or economic events. Building a complex and accurate model of how the economy should work and a mathematical model for every aspect of the economy may be useful in certain contexts, but it is not the primary importance of an economic model. Avoiding opportunity costs is also not directly related to the importance of an economic model.

The Importance of an Economic Model Is That It Allows