Economic models A) are people who act out the behavior of firms and households so that economists can study this behavior. b) are usually detailed replications of reality. C)are useful to researchers but not to teachers because economic models omit many details of the real-world economy. D )incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.
Economic models A) are people who act out the behavior of firms and households so that economists can study this behavior. b) are usually detailed replications of reality. C)are useful to researchers but not to teachers because economic models omit many details of the real-world economy. D )incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter1: Ten Principles Of Economics
Section1.1: How People Make Decisions
Problem 1QQ
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Economic models
A) are people who act out the behavior of firms and households so that economists can study this behavior.
b) are usually detailed replications of reality.
C)are useful to researchers but not to teachers because economic models omit many details of the real-world economy.
D )incorporate simplifying assumptions that often contradict reality, but also help economists better understand reality.
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Because of economic models,economists are able to understand economic terms and relate it to reality by making assumptions which may contradict reality.
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