Which of the following statements about economic models is TRUE?
A) Economic models are not empirically testable.
B) The predictive power of models is not as important as they serve the preferences of economists.
C) Economic models are designed so that every detail of the real world can be analyzed.
D) Every economic model is based on a set of assumptions.
Answer: D
Economics
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Refer to Table 4-8. If a minimum wage of $10.00 an hour is mandated, what is the quantity of labor demanded?
A) 390,000 B) 370,000 C) 350,000 D) 40,000
Economics
According to an old saying, when too much money is chasing too few goods, we have a(n)
a. recessionary gap. b. inflationary gap. c. full employment. d. paradox of thrift.
Economics