Economists Need to Develop Abstractions in Order To

question 96

Multiple Choice

Economists need to develop abstractions in order to:

• A)​avoid analyzing real-world economic interactions, which are too complicated to understand.
• B)​distinguish normative economic behavior from positive economic behavior.
• C)​avoid committing the fallacy of composition.
• D)​understand and explain economic behavior.

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Definitions:

Bottom-Up Communication

A communication approach where ideas and feedback flow from the lower levels of the organizational hierarchy to the upper levels, encouraging employee input and engagement.

Merit-Based Pay Raise

An increase in salary awarded to employees based on their performance and achievements, rather than seniority or hours worked.

Distributive Justice

The perceived fairness of how resources and rewards are distributed within a group or organization.

Ethical Egoism

The belief that actions are morally right if they benefit the individual making the decision.