Which of the following statements is correct?
A)Few economic models incorporate assumptions.
B)Different economic models employ different sets of assumptions.
C)Good economic models attempt to mimic reality as closely as possible.
D)Economic models,to be accepted,must be tested by conducting experiments.

Question

Quizplus · Accepted Answer

Different economic models employ different sets of assumptions. Economic models are generally simplifications of complex real-world phenomena, and they involve a set of assumptions that help to simplify the problem being studied. Different economic models often employ different sets of assumptions, and thus it is not correct to say that economic models are universally assumed. The choice (C) is also partially correct, as good economic models should aim to resemble reality as closely as possible, but this is not necessarily always the case. Finally, (A) and (D) are both incorrect. Economic models almost always incorporate assumptions, and it is not necessary to conduct experiments to validate economic models.

Which of the Following Statements Is Correct