An Economic Model That Contains a Highly Realistic Set of Assumptions

question 63

Multiple Choice

An economic model that contains a highly realistic set of assumptions is

• A)useful because there is then very little difference between "theory" and "reality."
• B)necessarily better able to predict the future.
• C)certainly superior to a model whose assumptions are somewhat unrealistic.
• D)more abstract than a model whose assumptions are further removed from reality.
• E)not likely to be useful because of its particularized nature and its complexity.

---

Definitions:

Less Information

Information that is inadequate or insufficient for making informed decisions.

Procedural Complexity

The extent to which a process or procedure involves multiple steps, stages, or components, making it difficult to navigate or complete.

Manage Process

The act of overseeing and directing a series of actions or steps to achieve a particular end.

Conflict

A situation or process in which individuals or groups perceive a threat to their needs, interests, or concerns, leading to a struggle.