An Economic Model That Contains a Highly Realistic Set of Assumptions

question 18

Multiple Choice

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

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

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Definitions:

Spreadsheet App

Software that allows users to organize, analyze, and store data in tables, and supports complex calculations, graphical displays, and data management.

Monthly Expenses

Recurring expenses incurred every month, such as rent, utilities, and groceries, part of personal or business financial planning.

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A software application designed for creating, editing, and formatting text documents.

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A collection of software applications typically including word processing, spreadsheets, presentations, and email management, used to produce work or conduct tasks.