A Model or Theory in Economics Is

question 136

Multiple Choice

A model or theory in economics is:

• A) based mostly on value judgments.
• B) built using relevant observations, assumptions, and abstractions.
• C) only useful if it correctly portrays the real world and its complexities.
• D) useful only if it is based on normative economic statements.

---

Definitions:

Symbolize

To represent something abstractly through another object, form, or idea, often found in art, literature, or symbols in mathematics and logic.

Statement Form

A type of logical expression that, when specific values are substituted for its variables, becomes a statement which can be either true or false.

Astronomers

Scientists who study celestial bodies such as planets, stars, and galaxies.

Astrology

A belief system that suggests a connection between the positions of celestial bodies and events on Earth, often used for predictions.