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Difficulty:
55%
(hard)
Question Stats:
68% (02:06) correct
32%
(02:35)
wrong
based on 153
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A common contention among economists is that if they could build an accurate mathematical model that accounted for all economic variables, they could effectively foretell the results of any economic action. But this meaningless conjecture cannot be evaluated because any inadequate predictions would obviously be blamed on imperfections in the model.
Which of the following, if true, would cast the most serious doubt on the economists’ conjecture?
A. The monetary supply produced and maintained by nations across the world is carefully observed and known to be inconsistent.
B. With existing economic models, large scale economic shifts can be predicted with greater accuracy than can relatively local changes in the economy.
C. As existing economic models improve, even small increments in complexity will require large increases in the number of computers required to implement the improved models.
D. Frequent, precise data regarding the decisions of governments and major corporations, as well as accurate predictions regarding upcoming climactic changes, are a prerequisite for constructing an accurate economic model.
E. Irrational human behavior, unexpected natural disasters, and several other processes that also cannot be quantified accurately are known to significantly and continuously affect the economy.
Which of the following, if true, would cast the most serious doubt on the economists’ conjecture?
A. The monetary supply produced and maintained by nations across the world is carefully observed and known to be inconsistent.
B. With existing economic models, large scale economic shifts can be predicted with greater accuracy than can relatively local changes in the economy.
C. As existing economic models improve, even small increments in complexity will require large increases in the number of computers required to implement the improved models.
D. Frequent, precise data regarding the decisions of governments and major corporations, as well as accurate predictions regarding upcoming climactic changes, are a prerequisite for constructing an accurate economic model.
E. Irrational human behavior, unexpected natural disasters, and several other processes that also cannot be quantified accurately are known to significantly and continuously affect the economy.
21 Jan 2026, 05:24
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ExpertsGlobal5
A common belief that’s prevailing among many economists is that they will be able to build a more accurate mathematical model, including all variables. And such a model would be able to foretell any economic action.
The author considers this idea or model to be meaningless, because anything that cannot be predicted can easily be blamed on the model as being imperfect.
We need to find an option that casts the doubt on economists common belief .
A. The monetary supply produced and maintained by nations across the world is carefully observed and known to be inconsistent.
The monetary supply of each nation is based on a separate model and principles, a one size fit approach model cannot be applied to the entire world. Hence, Wrong.
B. With existing economic models, large scale economic shifts can be predicted with greater accuracy than can relatively local changes in the economy.
If the existing economic models are able to predict large scale economic shifts with greater accuracy, then the new model should be able to predict local economic trends which are multi dimensional for each regions, both intra regional as well as inter regional. With the economist belief, it actually throws light that the model is possible in predicting subtle changes locally. Hence, Wrong.
C. As existing economic models improve, even small increments in complexity will require large increases in the number of computers required to implement the improved models.
This option speaks in a more generalised tone, even though it casts doubt on the upcoming economic model. The resource paucity is not the issue discussed at hand, rather is the model capable of providing accurate predictions on economic activity. Hence, wrong.
D. Frequent, precise data regarding the decisions of governments and major corporations, as well as accurate predictions regarding upcoming climactic changes, are a prerequisite for constructing an accurate economic model.
This option mentions the possible input parameters that needs to be taken into account while building an economic model. This doesn’t question the outcome of the economic model which is being created. Hence, Wrong.
E. Irrational human behavior, unexpected natural disasters, and several other processes that also cannot be quantified accurately are known to significantly and continuously affect the economy.
Among the inputs used to build a model, these parameters are essentially hard and extremely complex to understand and comprehend to the human mind. With such difficulties, it’s hard to build an error free system which takes into account all parameters to predict an economic activity. Hence, casts a serious doubt on the belief of economists. Correct answer.
Option E
25 Jan 2026, 17:45
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Video explanation:
