The Purpose of Making Assumptions in Economic Model Building Is

question 43

Multiple Choice

The purpose of making assumptions in economic model building is to

• A)force the model to yield the correct answer.
• B)minimize the amount of work an economist must do.
• C)simplify the model while keeping important details.
• D)express the relationship mathematically.

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Definitions:

Grid

A network of crossed lines or bars used to structure data, or a reference system for spatially locating points.

Avoid/Criticize Loop

A dysfunctional communication pattern where one party avoids addressing issues directly, while the other party responds with criticism, creating a cycle of negative interactions.

Criticize

To express disapproval of someone or something based on perceived faults or mistakes.

Time

The measured or measurable period during which an action, process, or condition exists or continues.