When Economists Construct Economic Models

question 37

Multiple Choice

When economists construct economic models,:

• A) every detail found in reality must be included.
• B) only mathematical equations are used.
• C) all the essential features of the environment are eliminated.
• D) all but the essential features of the environment are eliminated.

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Definitions:

Emergency Situations

Critical and unexpected circumstances that require immediate action to safeguard health, property, environment, or life.

Repeated Contact

The occurrence of being in the presence of or interacting with someone or something on multiple occasions, which can influence perceptions or relationships.

Broader Public Sphere

The open domain in society where individuals can come together to freely discuss and identify societal problems, and through that discussion influence political action.

Pluralistic Ignorance

A psychological phenomenon where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, leading to conformity despite personal beliefs.