Question

Economic models​ are:

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

Answer 1

B. simplified versions of reality designed to analyze​ "what ought to​ be" to help the government improve outcomes.

Step-by-step explanation:

Economic models are simplified versions of reality designed to analyze​ "what ought to​ be" to help the government improve outcomes.

The argument that economic models are futuristic rather than current in its approach, could be seen from the purpose it tries to achieve (its uses)

The uses of economic models include:

1. Prediction of economic activities in which assumptions are used to arrive at conclusions

2. Prescription of new economic guidelines for the modification of future economic behaviors .

3. Provision of logical defense for justification of economic policies.

4. Planning and allocation of resources.

5. For assistance in speculation about trading and investment.

All of these reasons are futuristic in nature, hence the alignment with the proposition that 'Economic models are simplified versions of reality designed to analyze​ "what ought to​ be" to help the government improve outcomes.'