A good economic model
A) cannot be refuted.
B) describes the real world completely and in detail.
C) captures the essential relationships of the problem under consideration.
D) captures all relationships about the problem under consideration.

Question

Quizplus · Accepted Answer

A good economic model captures the essential relationships of the problem under consideration, but it does not necessarily describe the real world completely and in detail, nor does it capture all relationships about the problem. Additionally, any economic model can be refuted based on new empirical evidence or changes in assumptions.

A Good Economic Model