Economic models are only useful in analyzing government policy.
A) True. Individuals are irrational and therefore economic models are useless.
B) False. Economic models can be used to predict individual and firm behavior.
C) True. Economists only model those questions for which they are hired.
D) False. Economic models are not even useful in analyzing government policy.
Question 2
The testing of economic models facilitates
A) proving a model is false.
B) proving a model is true.
C) proving that one person's opinion is morally incorrect.
D) proving that one society's legal structure is better than another country's.
