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:

Oral Agreement

A contract or agreement made through spoken communication rather than written, legally binding if it meets certain criteria.

Contract Discharge

The termination of a contract's obligations, which can occur through various means such as performance, agreement, or breach.

Art Show

An exhibition or display of artworks in a gallery or venue where artists can present their works to the public and potentially sell them.

Prestigious

Describes something or someone that is highly respected and admired for being successful or of high quality.