Final answer:
It's difficult for economists to apply results of economic models to reality due to the discrepancy between the rational, informational assumptions of such models and the often messy, unpredictable human behavior.
Step-by-step explanation:
Economists utilize economic models as tools to graphically represent theories and explain behavioral and decision-making phenomena. Despite their usefulness, it is challenging for economists to apply the results of these models to real-life because of two primary objections.
The first objection is that individuals, firms, and societies do not act in accordance with these models, lacking both the requisite information and the rationality assumed by the models. Decisions are made without constructing budget constraints or evaluating utility maximization, which leads to outcomes that are messier than the neat curves and lines of economic diagrams.
Economic models, while beneficial for understanding economic issues, face a disconnect when applied to real-world decision-making with the unpredictable variability of human behavior.