Which of the Following Statements About Economic Models Is True

question 173

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 important.
• 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:

Confidence Interval

A stretch of values, resulting from sample analytics, projected to envelop the value of a hidden attribute in a population.

Population Proportion

The ratio of members within a subset to the total number of members in a population.

Stratified Random Sampling

A method of sampling that involves dividing a population into smaller groups, known as strata, that share similar characteristics, and then randomly selecting members from each stratum for study.

Chi-Square Distribution

A statistical distribution used in hypothesis testing that is applicable to variables measured on an interval scale, often used to analyze categorical data.