Which of the Following Statements About Economic Models Is True

question 322

Multiple Choice

Which of the following statements about economic models is true?

• A) A good economic model is complex.
• B) A good model does not rely on any assumptions.
• C) Every model is based on a set of assumptions.
• D) Economic models are designed to explain what people need.

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Definitions:

Federal Trade Commission

An independent agency of the United States government aimed at promoting consumer protection and eliminating and preventing anticompetitive business practices.

Administrative Complaint

A formal accusation or allegation made against a party, typically filed with a governmental or regulatory body.

Puffing

Statements or claims made by a seller that are opinionated, exaggerated, or boastful, intended to entice a buyer without being legally binding.

Generalities

Refers broadly to statements, principles, or ideas that lack specificity and are applicable to many situations.