A good economic model has OA ambiguous predictions O B testa

A good economic model has OA. ambiguous predictions O B. testable predictions. O C. absence of assumptions. O D. extreme simplifications.

Solution

Economic models depict the real-life situations in much simplified scenario. This is done to better understand the real-life situations.

Complexities are toned down and essential facts or elements are given due weightage.

Good economic models always lead to predictions that can be tested. In other words, a good economic model has testable predictions.

Hence, the correct answer is the option (B).