When evaluating the usefulness of an economic model,one should check to see whether the model
A) is consistent with models in other social sciences.
B) is based on assumptions that are all close replicas of reality.
C) is intelligible to the average layperson.
D) predicts more accurately than any other model.
E) can be tested under carefully controlled conditions.

Question

Quizplus · Accepted Answer

The primary criterion for evaluating an economic model is its predictive accuracy. A model is useful if it can predict economic outcomes effectively, even if its assumptions are not entirely realistic.

When Evaluating the Usefulness of an Economic Model,one Should Check