Asked by
Jessi D'Angelo
on Oct 26, 2024
Verified
The models used in economics:
A) are always limited to variables that are directly related.
B) are essentially not reliable because they are not testable in the real world.
C) are of necessity unrealistic and not related to the real world.
D) emphasize basic relationships by abstracting from complexities in the everyday world.
Economic Models
Simplified versions of reality used by economists to understand and predict economic behavior and outcomes.
Real World
A term referring to actual existence or happening in life, outside of theoretical constructs or simulated environments.
- Gain an understanding of how economic models are constructed and their crucial function in simplifying the complexities of the real world.
Verified Answer
MM
Learning Objectives
- Gain an understanding of how economic models are constructed and their crucial function in simplifying the complexities of the real world.