Chapter 2, Problem 7MCQ

To determine

The question requires us to identify the option which is not representing an economic model.

Explanation of Solution

Economic models are a simplified version of a real-life scenario. Economists used models to represent a complex situation in simple or layman's terms.

The economic models can be in the form of a graph, and equation, a computer simulation, and a real but simplified version of an economy, but the whole economy itself can’t be an economic model because an economy is consist of multiple dynamic factors like inflation, unemployment, growth rate, poverty, inequality, exchange rate, and other economic variables which are interrelated and dependent on each other.

So, the economy itself could not be considered an economic model.