Which of the following is true of economic models?
A) Models are too theoretical to be applicable in real world decisions.
B) Models are not useful because uncertainty prevents accurate forecasts.
C) Models are simplified descriptions of processes, relationships, or other phenomena.
D) Models describe real world situations in complete detail.
E) Models are not useful because they do not take into account complicating and less important features of a problem.

Question

Quizplus · Accepted Answer

Economic models are simplified descriptions of processes, relationships, or other phenomena. They are not meant to describe every detail of a real-world situation, but rather to provide a simplified framework for understanding and analyzing economic phenomena.

Which of the Following Is True of Economic Models