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17 April, 14:16

Why do economists use models?

a. Models are used to add complexity to a simple world.

b. Models allow us to study a simplified version of a complex world.

c. Models allow us to control exogenous factors.

d. Models make the world harder to understand.

e. Models allow us to examine more factors than what actually exists in our world.

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Answers (2)
  1. 17 April, 15:33
    0
    The correct answer is letter "B": Models allow us to study a simplified version of a complex world.

    Explanation:

    An economic model is a general and simplified assumption of real-world phenomena. Economists make models attempting to understand why those situations arise and to predict what their causes could be over time. In some cases, models can turn into theories after research and scientific support.
  2. 17 April, 16:04
    0
    b. Models allow us to study a simplified version of a complex world.

    Explanation:

    A economic model is a simplified version of reality that allows us to observe things.
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