Question

An economic model is a simplified representation of some aspect of the economy. a mechanical machine that replicates the functioning of the economy. a fully detailed, realistic description of the economy. a computer program that predicts the future of the economy.

Answer 1

The correct answer is: a simplified representation of some aspect of the economy.

Step-by-step explanation:

An economic model is a simplified representation of the working of certain parts of an economy. It is not exactly a detailed replica of the economy but presents a simplified version of an economy.

We cannot study the exact detailed version of an economy because it will become too complex to understand. So certain things are assumed to be constant.

Though such models are not applicable in the real world, they help to understand the working of an economy to a great extent.