What Can Good Assumptions Do

question 30

Multiple Choice

What can good assumptions do?

• A) cause economists to leave out important variables that make their theories worthless
• B) simplify the complex world and make it easier to understand
• C) eliminate invalid causations
• D) allow economists to see the "big picture" instead of only small segments

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Definitions:

Flow Variable

A measure of something over an interval of time, such as your spending per week.

Point In Time

describes a specific moment or instance in the timeline.

Determined

A term describing a definite and firm decision or the resolution to follow a particular course of action.

Measured

A term referring to something that has been quantitatively determined or assessed by using specific units or standards.