Which one of the following statements with regard to economic models is not correct ?
[amp_mcq option1=”They involve simplification of complex processes.” option2=”They represent the whole or a part of a theory.” option3=”They can be expressed only through equations.” option4=”They help in gaining an insight into cause and effect.” correct=”option3″]
This question was previously asked in
UPSC CDS-2 – 2019
Statement C is incorrect. Economic models are simplifications of reality used to understand complex economic processes. While they can be expressed through equations (mathematical models), they can also be represented through diagrams (like supply and demand curves), graphs, or even verbal descriptions. Therefore, stating they can be expressed *only* through equations is wrong.
Economic models serve as tools for analysis and prediction, simplifying complex relationships. They are representations of theories, not the theories themselves.