An Economic Model Is Useful Only If It

question 38

Multiple Choice

An economic model is useful only if it:

• A) contains no positive statements.
• B) captures all the complexities of reality.
• C) yields accurate predictions.
• D) has both macro- and microeconomic applications.

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Definitions:

Ancestor

A person from whom one is descended, particularly from a distant past.

Kindred

A group of people related by blood or through marriage, often extended to include all relatives.

EGO

The part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Nuclear Family

A family unit consisting of two parents and their children living together as a single household, traditionally seen as a societal norm.