Question

Economic models are:

a. useless if they are simple.
b. potentially useful in forming economic policy.
c. made generally of wood, plastic, and/or metal.
d. set up and used to precisely mirror reality.

Answer 1

The correct answer is letter "B": potentially useful in forming economic policy.

Step-by-step explanation:

Economic models are abstractions that try to simplify phenomena of the real world. Economic models are the assumption that economists make to understand the diverse economic events that occur. Those models could be theoretical or mathematical in some cases.

Economic models can help governments establish economic policies based on facts of the environment and the variables affecting that community.