Economists Use Models to Explain Real-Life Situations Because

question 27

Multiple Choice

Economists use models to explain real-life situations because:

• A)such models tend to be exactly what is occurring in each situation.
• B)assumptions found in such models tend to make analyzing the situation more difficult.
• C)simplifications and assumptions often yield results that can help to explain the more difficult real-life situations.
• D)real-life situations are not relevant to the building of models.

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Definitions:

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An independent agency of the United States government aimed at preventing anti-competitive, deceptive, and unfair business practices.