Which Statement About Economic Models Is Not True

question 10

Multiple Choice

Which statement about economic models is not true?

• A) Analytical models consist of a clear set of assumptions and conclusions that are drawn from them.
• B) Economic models simplify reality because the economic reality is too complicated.
• C) Economic models consist of exogenous variables which are the response to changes in endogenous variables.
• D) Models are used in both theoretical and empirical work.
• E) Economic models must be coherent to be effective.

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Definitions:

Number Of Consumers

The total count of individuals or entities that purchase or are potential purchasers of goods and services in a given market.

Surplus

The situation that occurs when the quantity supplied of a good exceeds the quantity demanded at a given price.

Market For Candy

A consumer market segment dealing with the buying and selling of various types of candies.

Price

The amount of money required to purchase a product or service.