00:01
Given the following choices, which one describes an economic model.
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Choice a, a mechanical machine that replicates the functioning of the economy.
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B, a fully detailed realistic description of the economy.
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C, a simplified representation of some aspect of the economy.
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Or d, a computer program that predicts the future of the economy.
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The correct answer here is c.
00:27
It is a simplified representation of some aspect of the economy.
00:32
And let's see why we ruled out some of these other choices.
00:36
It's not a, because it's not a machine, it's not some sort of mechanical machine.
00:41
It's not b, because an economic model is not a fully detailed realistic description...