Question

"Economic models use many simplifying assumptions.​ Therefore, they do not apply to the more complex events in the real world."

True or False?

Answer 1

False

Step-by-step explanation:

Ordinarily, economics cannot study the real world in the true state, otherwise we will be on an assignment that will almost know no end. Instead economists resort to theoretical abstraction of the real world which is able to illustrate complex relationship between variables through some analysis (often mathematical).

Economic models are mostly developed to identify some complex real world problems and apply scientific methods so as to gain a better understanding of the world around us.