An economic model can be defined as
A)a testable claim which can be evaluated with proper data.
B)a representation of a theory or a part of a theory.
C)another word for theory.
D)a method to distinguish correlation from causation.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

An economic model is a simplified representation of a theory or a part of a theory. It is used to help understand and predict economic behavior and outcomes. While an economic model may be based on a theory or claim, it is not necessarily a testable claim in and of itself. Additionally, while economic models may be used to distinguish correlation from causation, this is not the primary purpose of an economic model.

An Economic Model Can Be Defined as