When Building a Model, an Economist Must

question 67

Multiple Choice

When building a model, an economist must:

• A) adjust for exceptional situations.
• B) provide a complete description of reality.
• C) make simplifying assumptions.
• D) develop a set of behavioral equations.

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Definitions:

Information Processing

A theory that describes how humans perceive, analyze, manipulate, store, and recall information, much in the same way that computers process data.

Cognitive Approach

A psychological perspective that focuses on how people perceive, think about, and mentally process the world around them.

Personality Differences

Variations in the emotional, attitudinal, and behavioral response patterns of individuals.