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.

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Definitions:

Progressive Social Change

Positive shifts in societal structures and norms that promote fairness, equity, and justice, advancing the welfare of the community.

Mass Behavior

Mass behavior describes the actions, reactions, and interactions of a large group of people, often in response to an event, trend, or collective concern.

Social Dilemmas

Situations in which individual actions, motivated by self-interest, result in outcomes that are detrimental to the collective interest of a group or society.

Fads

Short-lived trends or craze that become popular quickly but fade away as fast.