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.

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Definitions:

Hemoglobin

A protein found in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs.

Plasma

The liquid component of blood, composed of water, salts, proteins, and various other substances, in which blood cells are suspended.

Transferrin

A plasma protein that transports iron throughout the body.

Erythrocytes

Red blood cells that are primarily responsible for carrying oxygen and carbon dioxide throughout the body.