Question

A good economic model Select one:

A. leaves out unnecessary information.
B. is difficult to test.
C. assumes that "other things are unchanged."
D. is the mental equivalent of controlled experiments in a laboratory.
E. does all of the above.

Answer 1

A good economic model is one that leaves out unnecessary information, assumes that "other things are unchanged," and is the mental equivalent of controlled experiments in a laboratory.

Step-by-step explanation:

A good economic model is one that leaves out unnecessary information, assumes that "other things are unchanged," and is the mental equivalent of controlled experiments in a laboratory. It should also be noted that a good economic model should be testable and provide accurate predictions. For example, an economist predicting outcomes on the stock market creates a model based on expected points on the stock market index and compares it to the actual points recorded each day to assess its accuracy.