To Abstract from Reality in an Economic Model Means That

question 98

Multiple Choice

To abstract from reality in an economic model means that

• A) we include only a few of the essential aspects of reality.
• B) the economic study surveys only a very limited period of time.
• C) we include only those elements which support our hypothesis.
• D) the model includes every aspect of the real world.
• E) the model examines the actions of the consumers in the absence of producers and the government.

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Definitions:

Negligence Case

A legal action taken due to harm caused by someone's failure to carry out their responsibilities with due care.

Contributory Negligence

A traditional defense to negligence liability based on the plaintiff’s failure to exercise reasonable care for his own safety.

Individual's Failure

refers to a situation where a person does not meet the required or expected standard or outcome.

Res Ipsa Loquitur

Literally, the thing speaks for itself. A doctrine that, in some circumstances, gives rise to an inference that a defendant was negligent and that his negligence was the cause of the plaintiff’s injury.