Which statement is a characteristic of economic models?
A) They try to boil down an economic situation to its most basic elements.
B) They are always complex because the economy is complex.
C) They attempt to reproduce reality exactly.
D) They try to avoid invoking the ceteris paribus assumption.

Question

Quizplus · Accepted Answer

Economic models simplify reality to focus on essential elements, making them useful for understanding and predicting economic behavior.

Which Statement Is a Characteristic of Economic Models