Economists evaluate an economic model based on
A)the results of the model.
B)the testability of the implications of the model by empirical analysis.
C)data availability.
D)the consistency of the assumptions with the Classical model.

Question

Quizplus · Accepted Answer

Economists evaluate economic models based on their ability to be tested by empirical analysis. The results of the model and consistency of assumptions are also important, but the testability of the implications is essential for determining if the model accurately reflects real-world economic behavior. Data availability is also a consideration but does not necessarily determine the value of the model.

Economists Evaluate an Economic Model Based on