Select the Best Statement About Economic Models

question 149

Multiple Choice

Select the best statement about economic models.

• A)An economic model must always be correct in its predictions or it must be discarded.
• B)An economic model is evaluated based on the realism of its assumptions.
• C)An economic model should not generate predictions about actual events in the real world,since it discusses only abstract events.
• D)An economic model will be discarded if its predictions are often in conflict with the facts.
• E)Economic models are all false.

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Definitions:

Hertz

The unit of frequency in the International System of Units (SI), defined as one cycle per second.

Frequency

The rate at which something occurs over a particular period or in a given sample, often used in the context of waves or sound.

Kinesthetic

Relating to kinesthesia, the awareness of the position and movement of the parts of the body by means of sensory organs in the muscles and joints.

Audition

is the formal term for the sense of hearing, or the process by which sound waves are interpreted by the brain.