Why Do Economists Use Models

question 153

Multiple Choice

Why do economists use models?

• A) Models are used to add complexity to a simple world.
• B) Models allow us to study a simplified version of a complex world.
• C) Models allow us to control exogenous factors.
• D) Models make the world harder to understand.
• E) Models allow us to examine more factors than what actually exists in our world.

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Definitions:

Environmental Factors

Various external factors such as climate, soil, water, atmosphere, and living organisms that can influence the development and survival of organisms.

Maple Tree

A type of tree known for its distinctive leaf shape, sap which can be made into syrup, and vibrant fall coloration.

Surface Area

The total area of the exterior surface of a three-dimensional object.

Huntington Disease

A genetic disorder causing the breakdown of nerve cells in the brain, leading to physical and mental deterioration.