An Economic Model Is

question 44

Multiple Choice

An economic model is:

• A) a simplified representation of the real world used to understand relationships between economic variables
• B) an overly simplified depiction of the real world, used only in introductory economics
• C) a complex diagrammatic depiction of the real world used to confuse economic students
• D) a complex mathematical analysis of the real world used only by experienced economists

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Definitions:

Idealized Thinking

Involves thinking of something in its best possible form, often ignoring practical limitations or imperfections.

Adolescent Egocentrism

The heightened self-consciousness of adolescents, which is reflected in adolescents’ beliefs that others are as interested in them as they are in themselves, and in adolescents’ sense of personal uniqueness and invulnerability.

Imaginary Audience

A psychological concept in which an individual believes that their behavior is the focus of others' attention more than is actually the case.

Personal Fable

A cognitive distortion experienced by adolescents, believing their thoughts, feelings, and experiences are unique and not understood by others.