Which of the Following Is True of an Economic Model

question 48

Multiple Choice

Which of the following is true of an economic model or theory?

• A) Since models do not contain all the complexities of the real world, they are not an effective tool of analysis.
• B) Models are a simple analysis of the central, or essential, issues pertaining to an economic
• C) Economic models and theories are normative in nature.
• D) The use of economic models complicates the analysis of simple economic problems.

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Definitions:

Cold War

The period of geopolitical tension and ideological conflict between the Soviet Union and its allies and the United States and its allies, roughly from the end of World War II in 1945 until the dissolution of the Soviet Union in 1991.

Conservative

A political and social philosophy promoting traditional institutions, values, and practices, and often expressing skepticism towards rapid changes and innovations.

Third World

An outdated term originally used to describe countries that were neither aligned with NATO (the First World) nor the Communist Bloc (the Second World), often used now to refer to developing countries.