One Reason That Economists Make Assumptions When Designing Models Is

question 159

Multiple Choice

One reason that economists make assumptions when designing models is to

• A) exclude variables that do not add predictive power to the model.
• B) make models more like the real world.
• C) make models more complex.
• D) increase endogenous factors.
• E) ensure that all possible factors are included.

Examine the development and outcomes of identity crises during adolescence.

Understand the concept and implications of ethical dilemmas in business.

Identify and apply the Golden Rule in ethical decision-making.

Recognize and differentiate between primary values, including freedom.

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Definitions:

Big Five Trait

A reiteration of the Big Five model focusing on individual dimensions, indicating a person's location on the spectrum of each of the five major personality factors.

Agreeableness

A personality trait that reflects how cooperative, kind, and friendly an individual is towards others.

Narcissistic

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, combined with a lack of empathy for others.

Neurotic

A term describing individuals who are prone to emotional instability, anxiety, and other psychological stresses.