Economic models
A)are people who act out the behavior of firms and households so that economists can study this behavior.
B)are usually detailed replications of reality.
C)incorporate simplifying assumptions that often contradict reality,but also help economists better understand reality.
D)are useful to researchers but not to teachers because economic models omit many details of the real-world economy.

Question

Quizplus · Accepted Answer

Economic models are simplified versions of reality that help economists better understand and analyze economic behavior. They incorporate simplifying assumptions that may not be entirely realistic, but still allow for useful analysis and insights.

Economic Models