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:

General Characteristics

Broad traits or features that can be used to describe a category, group, or type of things or people.

Controversies

Issues that cause public disagreement or debates due to differing opinions and viewpoints.

Fixed-price Policy

A fixed-price policy is a pricing strategy where the seller sets a specific price for a product or service that is not subject to change based on fluctuations in the market or inventory levels.

Penetration Pricing

A pricing strategy where the price of a product is initially set low to enter a competitive market and attract customers.