Which of the Following Statements About Economic Models Is TRUE

question 188

Multiple Choice

Which of the following statements about economic models is TRUE?

• A) Economic models are not empirically testable.
• B) The predictive power of models is not as important as they serve the preferences of economists.
• C) Economic models are designed so that every detail of the real world can be analyzed.
• D) Every economic model is based on a set of assumptions.

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Definitions:

Command Instruction

A direction or order given to a computer or software application to perform a specific task or operation.

SPSS Program

A comprehensive software package for statistical analysis and data management, widely used in social sciences research.

Crosstabs

Short for cross-tabulations, a statistical tool used to analyze the relationship between two or more categorical variables.

Categorical

Relating to data or variables that represent categories, allowing for data to be organized based on characteristics or qualities rather than numerical values.