Economists Build Models That Abstract from the Complexities of Reality

question 41

Multiple Choice

Economists build models that abstract from the complexities of reality because

• A)economists do not understand the real world.
• B)economists are not interested in reality.
• C)it is easier to do so.
• D)the complexities of reality are unimportant.
• E)they believe they gain a greater understanding of reality.

---

Definitions:

Payoffs

The benefits or rewards reaped as a result of making certain choices or pursuing certain actions.

Integral Role

A crucial function or part played by a component within a system or process.

Communication Vehicle

A medium or channel through which information, messages, or data are transmitted from a sender to a receiver.

Exert Leverage

The act of using one's advantage or influence to affect or sway outcomes in a desired way.