Economic Models Are Only Useful in Analyzing Government Policy

question 42

Multiple Choice

Economic models are only useful in analyzing government policy.

• A) True, individuals are irrational and therefore economic models are useless.
• B) False, economic models can be used to predict individual and firm behavior.
• C) True, economists only model those questions for which they are hired.
• D) False, economic models are not even useful in analyzing government policy.

---

Definitions:

Resources

Resources are assets, materials, or other valuables that can be utilized to achieve goals, conduct operations, or solve problems.

Functionalism

A theoretical framework in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

Social Stability

The state of societal consistency and predictability, where social structures, institutions, and relationships remain relatively unchanged over time.

Microsociological

Pertaining to the study of individual and interpersonal behavior and interactions within small groups.