Question

Economic models Select one: a. can be useful, even if they are not particularly realistic. b. must incorporate all aspects of the economy if they are to be useful. c. cannot be useful if they are based on false assumptions. d. were once thought to be useful, but that is no longer true.

Answer 1

Option B

Economic models  must incorporate all aspects of the economy if they are to be useful.

Explanation:

An economic model is an abridged explanation of actuality, intended to comply with assumptions about financial habits that can be inquired. An essential feature of an economic model is that it is inevitably biased in perspective because there are no actual criteria for economic outcomes.

Several statisticians will present diverse decisions about what is necessitated to justify their ideas of existence. The model assists the statistician to inevitably detach and classify out intricate series of reasons and results and control among the various interacting components in an economy.