Answer to Question #221476 in Microeconomics for Rajeev Tomar

Question

Explain five features of a good economic model

Answer 1

For a good economic model, whether the model has been already accepted widely or in the acceptance process, it needs to possess several features including conceptual insightfulness, parsimony, generalizability, tractability as well as falsifiability. Several economic factors are considered to proclaim to consider an economic model effective including stability.