If an Important Assumption Is Omitted from an Economic Model

question 12

Multiple Choice

If an important assumption is omitted from an economic model,

• A)the model's predictions will only be accurate 50% of the time.
• B)the model's predictions may be inaccurate.
• C)the model will not predict anything.
• D)the model is not simple enough.

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Definitions:

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, leading to inflexibility and inefficiency.

Stingy

Reluctant to spend or give; showing a lack of generosity.

Avoidant Personality Disorder

A mental health condition characterized by a long-standing pattern of extreme sensitivity to rejection, social inhibition, and feelings of inadequacy.

Dysfunctional Beliefs

Negative and incorrect beliefs that are rigid, extreme, and not based on reality, often contributing to psychological distress.