Question

Economic models​ are:

A. simplified versions of reality designed to analyze​ "what is" to explain human decision making in a business context.
B. complex mathematical formulas designed to forecast future economic events such as inflation.
C. simplified versions of reality designed to analyze​ "what is" to explain human decision making in any context.
D. simplified versions of reality designed to analyze​ "what ought to​ be" to help the government improve outcomes. E.

Answer 1

B.

Step-by-step explanation:

This is quite a trick question. Because no matter how complex the mathematical formula gets, and it can get really complex, an economic model IS a simplified version of reality.

But B is the most acurate because it's the more general, "forecast future economic events" can be broad set of things,

Some times it models decision making, some time it doesn't. Some times models "what is" and some times "what ought to be".