Economists Make Assumptions Because

question 119

Multiple Choice

Economists make assumptions because

• A)they need to incorporate value judgments into their models.
• B)analysis without assumptions would be impossibly complex.
• C)they always have imperfect information about reality.
• D)assumptions are the final product of careful economic analysis.
• E)assumptions allow economists to ignore things that they cannot explain.

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Definitions:

Modular Design

A design approach that subdivides a system into smaller parts or modules that can be independently created and then used in different systems to drive multiple functionalities.

Tangible Products

Physical items that can be seen, touched, and owned, as opposed to services or digital goods.

Product Strategy

A company's plan for marketing its products, which includes decisions on product design, features, pricing, distribution, and promotion.

Forecasting Capacity Requirements

The process of estimating the resources and capabilities needed to meet demand over a future period, critical for planning and resource allocation.