What is true about an economic model?
A) It is built on a series of assumptions.
B) It establishes cause and effect between variables.
C) It could also be called an economic theory.
D) All of the above.

Question

Quizplus · Accepted Answer

Economic models are indeed built on a series of assumptions to simplify the complex real-world economic scenarios, they aim to establish cause and effect relationships between variables, and they can also be referred to as economic theories, as they provide theoretical frameworks to understand economic processes.

What Is True About an Economic Model