Each of the Following Statements About the Use of Models

question 15

Multiple Choice

Each of the following statements about the use of models in the study of economics is true EXCEPT:

• A) models fit the observed facts exactly.
• B) models are sometimes revised in light of new research findings.
• C) models are easier to manipulate than the reality they represent.
• D) models contain the essential features of the economic behavior being studied.

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Definitions:

Philosophy

The study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Cold Weather

A condition of low temperatures in the environment, which can have various economic impacts depending on the context.

Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Free Lunch

An idiom expressing the idea that it is impossible to get something for nothing, disputing the possibility of receiving a benefit without providing compensation.