Which is a characteristic of economic models?
A) They try to boil down an economic situation to its most basic elements.
B) They are always complex because the economy is complex.
C) They attempt to reproduce reality exactly.
D) They try to avoid invoking the ceteris paribus assumption.

Question

Quizplus · Accepted Answer

Economic models are simplified representations of complex economic situations. They try to identify the most important variables and relationships that are necessary to understand the situation at hand. This requires boiling down the situation to its most basic elements.

Which Is a Characteristic of Economic Models