An economic model:

A) omits critical elements.
B) must be presented in mathematical terms.
C) simplifies reality in order to focus on its essential elements.
D) can never be proven wrong if its assumptions are realistic.
E) produces poor predictions if it includes an unrealistic assumption.

Economic Model

A simplified representation of economic processes, used to understand and predict economic behaviors by focusing on key variables and their relationships.

Mathematical Terms

Mathematical terms refer to the specific vocabulary used in mathematics to describe concepts, operations, and properties within the field.

Unrealistic Assumption

A simplified or idealized condition used in economic models or theories that may not fully represent real-world complexities.