Question

The purpose of an economic model is to:Question 9 options:a) demonstrate which values and beliefs are best for the economy.b) manage the economy like an automatic pilot.c) explain the behavior of the issue being examined.d) be a complex, exact replica of reality.

Answer 1

The purpose of an economic model is to explain the behavior of the issue being examined.

c) explain the behavior of the issue being examined.

Explanation:

The thesis of the economic behavior that can be tested is obtained through an economic model. The economic model describes reality in simplified manner.

Economists generally rely on economic theories or models to study the issues in real-world. The economic models propose the economic ideas that will be helpful for the individuals, company or the government to make decisions. The economic model explains the behavior of the issue that is examined, and helps economist to make predictions about the real world.

Economists use economic models to answer questions.