All Economic Models Must Involve Simplifications Because

question 50

Multiple Choice

All economic models must involve simplifications because:

• A)economists would be unable to command high salaries if their models were so simple that anyone could understand them.
• B)human behavior is very erratic and unpredictable.
• C)reality is too complex to understand in its entirety,so we must reduce the complexity to a level that we can understand.
• D)they always try to duplicate all possible information and cover all possible variables that might influence decision making.
• E)we must rely on value judgments and ignore reality.

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Definitions:

Snellen Test

An eye examination test that measures visual acuity using a chart of letters or symbols of steadily decreasing size.

Sclera

The white outer layer of the eyeball, providing structural support and protection for the eye.

Choroid

A vascular layer of the eye located between the sclera and the retina, which provides oxygen and nutrients to the outer retina.