Which of the Following Statements Does NOT Describe Model Building

question 188

Multiple Choice

Which of the following statements does NOT describe model building in economics?

• A) Models are developed to cover specific behaviors only.
• B) Models are created and then tested.
• C) Models are used to help understand the general economy.
• D) Assumptions are used to analyze an economic issue.

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Definitions:

Vertical Line

A straight line that goes from up to down (or down to up) and does not slant; in Cartesian coordinates, it is described by an equation of the form \(x = a\).

Slope-intercept Form

An equation of a straight line in the form y = mx + b, where m is the slope and b is the y-intercept.

Slope-intercept Form

A way of writing the equation of a straight line in the form y = mx + b, where m is the slope and b is the y-intercept.

Slope

A measure of the steepness or the inclination of a line, defined as the ratio of the vertical change to the horizontal change.