All Economic Models Must Involve Simplifications Because

question 47

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 it 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:

Sustainable Living

Practices that reduce one’s environmental impact by living in a way that can be maintained over the long term without depleting resources or causing harm.

Migration Motives

The various reasons or factors that drive individuals or groups to move from one location to another, ranging from economic opportunities to safety concerns.

Ecocity

A city designed with careful consideration of environmental impacts, incorporating sustainable practices in energy, water, and food systems, and urban planning.

Mass Transit

A public transportation system designed to move large numbers of people efficiently by buses, trains, subways, or other vehicles.