Which of the Following Statements About Economic Models Is True

question 173

Multiple Choice

Which of the following statements about economic models is true?

• A) Economic models are not empirically testable.
• B) The predictive power of models is not important.
• C) Economic models are designed so that every detail of the real world can be analyzed.
• D) Every economic model is based on a set of assumptions.

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Definitions:

Agoraphobia

An anxiety disorder that involves an extreme or irrational fear of entering open or crowded places, leaving one's own home, or being in places from which escape might be difficult.

Natural Environment Type Phobia

Anxiety disorders characterized by excessive fear of specific natural environments or situations.

Cortisol Levels

The concentration of cortisol, a hormone produced by the adrenal glands, which increases in response to stress and low blood-glucose concentration.

Hippocampus

A region of the brain that is associated with the formation of memories and navigation.