Neoclassical Economic Models Make Simplifying Assumptions About People's Rationality and Preferences

question 163

Multiple Choice

Neoclassical economic models make simplifying assumptions about people's rationality and preferences for the following reasons, except

• A)these assumptions make the models mathematically elegant.
• B)these assumptions allow the models to be conveniently solved mathematically.
• C)these assumptions allow the models to generate quite precise predictions of behavior.
• D)these assumptions allow the models to generate quite accurate predictions of behavior.

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Definitions:

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