Which of the Following Statements About Economic Models Is True

question 49

Multiple Choice

Which of the following statements about economic models is true?

• A)There is only one correct economic model.
• B)All economic models are based on the same assumptions.
• C)The purpose of economic models is to show how endogenous variables affect exogenous variables.
• D)Economists use different models to address different economic phenomena.

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Definitions:

Invented

The process of creating or designing something that did not previously exist, often referring to the conception of new ideas, devices, or methods.

Invention Hazards

The potential risks or unintended negative consequences associated with the creation and implementation of new inventions or technologies.

Normal Accidents

Refers to complex systems' inevitable incidents caused by their intricacies and interactive elements, often unpredictable.

Invention Speculation

The act of predicting or theorizing about future inventions and technological advancements without concrete evidence.