An Appropriate Test of the Effectiveness of an Economic Model

question 312

Multiple Choice

An appropriate test of the effectiveness of an economic model is

• A) the number of variables contained within the model.
• B) the model's ability to predict future economic activity.
• C) the number of economists who have worked on the model.
• D) the number of assumptions which the economist has made.

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Definitions:

Psychological Security

A state of mind where an individual feels safe from harm, allowing for free expression and fulfillment of needs.

Prejudices

Preconceived opinions or judgments toward people, objects, or situations based on stereotypes, without sufficient knowledge or examination.

Concealment

The act of hiding something or preventing it from being known.

Experience Of Prejudice

The undergoing or encountering of negative judgments or discriminatory actions based on preconceived notions or biases.