Which of the Following Statements About Economic Models Is True

question 1

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 questions.

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Definitions:

F Table

A table used in statistics to find critical values of the F distribution, helpful in hypothesis testing such as ANOVA.

Probabilities

A numerical representation, between 0 and 1, of the probability that an event will take place.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution.

Standard Normal Distribution

The standard normal distribution is a special case of the normal distribution that has a mean of zero and a standard deviation of one.