The Purpose of an Economic Model Is To

question 119

Multiple Choice

The purpose of an economic model is to:

• A) describe the way economists think the world should be.
• B) provide a simplified representation of a complicated situation.
• C) describe the best possible outcomes for society.
• D) explain a situation without making strong assumptions.

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Definitions:

Criteria

Standards or rules by which something can be judged or decided.

Range of Actions

The spectrum or variety of behaviors or activities an individual can perform or engage in.

Behaviors

Actions or reactions of an individual in response to external or internal stimuli.

Individual

Pertaining to a single person or thing, as opposed to a group or collective.