Question

Which of the following statements is true?
a.Models help economists to explain the past, but do not help in predicting the future.
b.Models that economists use are perfect replicas of reality.
c.Testing with data enables economists to distinguish between good models and bad models.
d.The scientific method used by economists is based on idealism and not empiricism.

Answer 1

Answer:

Option C

Explanation:

Testing with data enables economists to distinguish between good and bad models.

Data is a very essential information when building up a model, it is the frame work of the models that provides the necessary information that be the solution to the problem. In other to be sure that such model is the perfect for a solution, we have to test them if it meets the sole reason why it was created, here also, data is very key. because how sure can you be if the model you created is the best fit, only if you test, this will determine if the model is right or wrong.

With this, option C is the statement that is true