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 can make predictions that can be tested with empirical data.
D)It could also be called an economic theory.
E)It is built on a series of assumptions,it establishes cause and effect between variables,it can make predictions that can be tested with empirical data,and it could also be called an economic theory.

Question

Quizplus · Accepted Answer

All of the statements mentioned are true about economic models. They are built on a series of assumptions, establish cause and effect between variables, can make predictions that can be tested with empirical data, and could also be called economic theories. Therefore, option E is the best choice.

What Is True About an Economic Model