For an Economist,the Idea of Making Assumptions Is Regarded Generally

question 28

Multiple Choice

For an economist,the idea of making assumptions is regarded generally as a

• A)bad idea,since doing so leads to the omission of important ideas and variables from economic models.
• B)bad idea,since doing so invariably leads to data-collection problems.
• C)good idea,since doing so helps to simplify the complex world and make it easier to understand.
• D)good idea,since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.

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Definitions:

Government

The organized governing body of a nation, state, or community, responsible for creating and enforcing laws, policies, and regulations.

Consumers

Individuals or entities that use goods or services produced within an economy.

Producers

Individuals or companies that create goods or services for sale or exchange.

Excise Tax

A tax imposed on specific goods, services, or transactions, often aimed at discouraging their use or raising government revenue.