Which of the following statements about economic models is true?
A) There is only one correct economic model.
B) All economic models are based on the same assumptions.
C) The purpose of economic models is to show how endogenous variables affect exogenous variables.
D) Economists use different models to address different economic phenomenon.

Question

Quizplus · Accepted Answer

Economists use different models to address different economic phenomenon. There is no one correct economic model and the assumptions behind each model may vary based on the specific economic phenomenon being studied. The purpose of economic models is to explain the relationships between different variables and to predict how changes in one variable may affect others.

Which of the Following Statements About Economic Models Is True