A Good Economic Theory

question 17

Multiple Choice

A good economic theory:

• A)​includes every detail that affects the economic behavior of interest.
• B)​relies on simplifying assumptions in order to explain economic behavior.
• C)​does not rely on simplifying assumptions.
• D)​is impossible to achieve because of the difficulty of conducting controlled experiments.

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Definitions:

Cro-Magnons

Early modern humans that lived in Europe approximately 40,000 to 10,000 years ago, known for their sophisticated tools and art.

Spears

Long-shafted weapons with a pointed tip, typically used for thrusting or throwing.

Environment

The surrounding conditions, influences, and natural life in which a person, animal, or plant lives and operates.

Living Lineages

Sequences of living organisms that are descended from a common ancestor, showcasing the path of evolution.