Which of the following statements concerning economic models is FALSE?
A) Economic models must provide usable predictions.
B) Economic models are based on data alone and no assumptions.
C) Economic models are tested empirically.
D) Economic models relate to how people behave.

Question

Quizplus · Accepted Answer

Economic models are not based on data alone, they also involve assumptions and simplifications to make them manageable.

Which of the Following Statements Concerning Economic Models Is FALSE