The Purpose of Making Assumptions in Economic Model Building Is

question 43

Multiple Choice

The purpose of making assumptions in economic model building is to

• A)force the model to yield the correct answer.
• B)minimize the amount of work an economist must do.
• C)simplify the model while keeping important details.
• D)express the relationship mathematically.

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Definitions:

Agency Behavior

Actions and decisions made by agents representing others in business transactions, reflecting the interest of the principal.

Informal Rulemaking

A regulatory process that involves the publication of a proposed rule and the consideration of public feedback before finalizing the rule.

Federal Register

The official journal of the federal government of the United States that contains government agency rules, proposed rules, and public notices.

Constitutional Tests

Judicial standards and criteria used to evaluate laws and government actions to ensure they conform with the Constitution.