One Reason That Economists Make Assumptions When Designing Models Is

question 159

Multiple Choice

One reason that economists make assumptions when designing models is to

• A) exclude variables that do not add predictive power to the model.
• B) make models more like the real world.
• C) make models more complex.
• D) increase endogenous factors.
• E) ensure that all possible factors are included.

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Definitions:

Contact

The act of communication or interaction with someone, or the physical touching of an object or surface.

Inhalation

The action of breathing in; it's a route through which various substances, including medications, can enter the body.

Reddening

The process of becoming red, often as a response to emotion, heat, or injury.