Choose the Answer That Best Explains Why Economists Build Models

question 43

Multiple Choice

Choose the answer that best explains why economists build models that abstract from the complexities of reality.

• A)Because the complexities of reality are unimportant.
• B)Because they believe they gain a greater understanding of reality.
• C)Because economists are not interested in reality.
• D)Because this allows economists to conduct controlled experiments to test their theories.
• E)Because economics deals only in the abstract.

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Definitions:

Categories Of Adopters

Categories of adopters refer to the classification of individuals within a market divided by how soon they adopt a new product or innovation, often outlined as innovators, early adopters, early majority, late majority, and laggards.

Laggards

In the context of marketing and innovation, individuals who are the last to adopt new products or technologies, often resistant to change.

Late Majority

A group in the diffusion of innovation theory, representing consumers who adopt new products or technologies after the average member of society, often motivated by a desire to maintain the status quo.

Late Adopters

Individuals or groups who are among the last to use or accept new products, technologies, or ideas, often due to skepticism or resistance to change.