Why Do Economists Use Models

question 153

Multiple Choice

Why do economists use models?

• A) Models are used to add complexity to a simple world.
• B) Models allow us to study a simplified version of a complex world.
• C) Models allow us to control exogenous factors.
• D) Models make the world harder to understand.
• E) Models allow us to examine more factors than what actually exists in our world.

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Definitions:

Cultural Biases

Refers to the prejudices or predispositions toward certain cultures or cultural practices, often stemming from one's own cultural background.

Withholding Judgment

The deliberate action of not forming an opinion or conclusion prematurely.

Tolerating Ambiguity

The ability to remain comfortable and continue functioning effectively when situations are unclear or information is incomplete.

Cultural Context

The various social, religious, economic, and cultural factors that influence the way individuals perceive and interact with the world around them.