All Economic Models Must Involve Simplifications Because

question 50

Multiple Choice

All economic models must involve simplifications because:

• A)economists would be unable to command high salaries if their models were so simple that anyone could understand them.
• B)human behavior is very erratic and unpredictable.
• C)reality is too complex to understand in its entirety,so we must reduce the complexity to a level that we can understand.
• D)they always try to duplicate all possible information and cover all possible variables that might influence decision making.
• E)we must rely on value judgments and ignore reality.

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The process of intervening in a dispute in order to resolve it or reduce its intensity, often by finding a mutually acceptable solution.

Effective in Jobs

Describes the ability to fulfill job duties in a competent and proficient manner, often leading to successful outcomes and achievements.

High Need for Affiliation

A personality trait characterized by a strong desire to develop and maintain social relationships and to be part of groups.

Allocate Scarce Resources

The process of distributing limited resources among competing needs or users in order to achieve desired outcomes.