Economic models, such as the circular-flow model:
A) distort reality in order to improve forecasting ability.
B) predict phenomena without explaining them.
C) explain phenomena without predicting them.
D) include every detail and interrelation among variables that are being analyzed.
E) capture the important elements of the problem under study.

Question

Quizplus · Accepted Answer

The Answer of Economic models, such as the circular-flow model:
A) distort reality in order to improve forecasting ability.
B) predict phenomena without explaining them.
C) explain phenomena without predicting them.
D) include every detail and interrelation among variables that are being analyzed.
E) capture the important elements of the problem under study.

Economic Models, Such as the Circular-Flow Model