An economic model should capture
A) the essential relationships that help to analyze the problem.
B) all possible variables that apply to the problem.
C) only social value related variables.
D) all of the above.

Question

Quizplus · Accepted Answer

An economic model should capture the essential relationships that help to analyze the problem. While it is important to include relevant variables in the model, including all possible variables can make the model too complex and difficult to analyze. Additionally, including only social value related variables may not accurately capture all the factors that influence the problem.

An Economic Model Should Capture