Economic models are used to
A) simplify reality to predict outcomes.
B) exactly replicate reality.
C) predict all possible outcomes of a study.
D) determine the thoughts of individuals.

Question

Quizplus · Accepted Answer

Economic models are designed to simplify complex economic systems to make predictions about how they will behave in the future. While they are not exact replicas of reality, they can help us to understand how different factors and variables can impact economic outcomes. Economic models do not aim to predict all possible outcomes of a study, nor can they determine the thoughts of individuals.

Economic Models Are Used to