The Scientific Purpose of Simplifying Assumptions in an Economic Model

question 60

Multiple Choice

The scientific purpose of simplifying assumptions in an economic model is to

• A)avoid confronting difficult issues.
• B)eliminate the need for further testing of the implications of the model.
• C)abstract from the complexities of the real world those issues that are not important for the issues under examination.
• D)eliminate the possibility of personal bias in the model.
• E)add necessary hypotheses to the problem.

Understand and apply the concepts of marginal output and marginal cost in various business situations.

Graphically represent cost curves including AVC, ATC, and MC and interpret their relationships.

Understand the different scales of measurement and their characteristics.

Identify and apply the appropriate graphical representation for different types of data.

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Definitions:

Pain-Relief Medications

Drugs specifically formulated to alleviate pain, ranging from over-the-counter analgesics to prescription opioids, depending on the intensity and type of pain.

Scale

A device or tool used for measuring weight or mass of objects or individuals.

Recur

Recur means to occur again or repeat after a period of absence, often used in the context of symptoms or conditions in medical discussions.

Point

A precise location or position in space, often used as a reference or for navigation.