The Basic Purpose of Economic Models Is To

question 33

Multiple Choice

The basic purpose of economic models is to:

• A) make simplifying assumptions about the real world.
• B) explain reality in all its complexity.
• C) collect empirical data to support facts.
• D) construct situations where controlled experiments can be carried out.
• E) explain and predict events.

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Definitions:

Experimental Group

In research, the group of participants that is exposed to the variable or intervention being tested.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning as one variable increases, the other also increases, or as one decreases, the other also decreases.

Intelligence

The capacity for learning, reasoning, understanding complex ideas, solving problems, and adapting effectively to the environment.

Correlation

Correlation is a statistical measure that indicates the extent to which two or more variables fluctuate together.