Which of the Following Statements About Economic Models Is TRUE

question 223

Multiple Choice

Which of the following statements about economic models is TRUE?

• A)Economic models are not empirically testable.
• B)The predictive power of models is not important.
• C)Economic models are designed so that every detail of the real world can be analyzed.
• D)Every economic model is based on a set of assumptions.

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Definitions:

Treatments

Interventions or actions taken in a research study to investigate their effects on an outcome of interest.

Critical Value

A point on a statistical distribution that represents a threshold beyond which an observed test statistic is considered significant.

P-value

The chance of achieving results from a test that are at minimum as critical as what was actually noted, on the condition that the null hypothesis holds.

Treatment Means

The average outcomes or effects of different treatments or conditions in a study.