For an Economist,the Idea of Making Assumptions Is Regarded Generally

question 28

Multiple Choice

For an economist,the idea of making assumptions is regarded generally as a

• A)bad idea,since doing so leads to the omission of important ideas and variables from economic models.
• B)bad idea,since doing so invariably leads to data-collection problems.
• C)good idea,since doing so helps to simplify the complex world and make it easier to understand.
• D)good idea,since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.

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Definitions:

Financial Books

Records and documents that capture all financial transactions of a business, facilitating the preparation of financial statements.

Canadian Dollar

The official currency of Canada, often represented by the symbol CAD or C$.

Translation Gain

Profit or gain recognized from converting foreign currency transactions into the functional currency of a business during the consolidation of financial statements.

Direct Quote

An international exchange rate specified as the native currency per foreign currency unit.