Choose the Answer That Best Explains Why Economists Build Models

question 43

Multiple Choice

Choose the answer that best explains why economists build models that abstract from the complexities of reality.

• A)Because the complexities of reality are unimportant.
• B)Because they believe they gain a greater understanding of reality.
• C)Because economists are not interested in reality.
• D)Because this allows economists to conduct controlled experiments to test their theories.
• E)Because economics deals only in the abstract.

---

Definitions:

Inputs

Resources used in the production of goods and services, such as labor, materials, and capital.

Output

The total amount of goods or services produced by a company, system, or economic process.

Marginal Product

The additional output that is produced by using one more unit of a particular input, ceteris paribus.

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.