2019 · Q86
Which one of the following statements with regard to economic models is not correct?
General KnowledgeIndian Economy
- AThey involve simplification of complex processes.
- BThey represent the whole or a part of a theory.
- CThey can be expressed only through equations.
- DThey help in gaining an insight into cause and effect.
Explanation
Economic models simplify reality, represent economic theories and help trace cause-and-effect relationships — all correct. But models can be expressed verbally, diagrammatically or mathematically; they are not built ‘only through equations’. Hence that statement is not correct.