Economic models are built with
A)recommendations concerning public policies.
B)facts about the legal system.
C)assumptions.
D)statistical forecasts.

Question

Quizplus · Accepted Answer

Economic models are built on assumptions about how agents behave in certain economic situations. These assumptions allow economists to make predictions about future economic events or policy outcomes. While economic models can inform public policy recommendations, they are not built to provide them directly. Legal system facts and statistical forecasts may be used in economic models, but they are not the foundation of the models.

Economic Models Are Built with