One Reason That Economists Make Assumptions When Designing Models Is

question 159

Multiple Choice

One reason that economists make assumptions when designing models is to

• A) exclude variables that do not add predictive power to the model.
• B) make models more like the real world.
• C) make models more complex.
• D) increase endogenous factors.
• E) ensure that all possible factors are included.

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Definitions:

Nonmarital Relationship

A romantic or sexual relationship between individuals who are not legally married to one another.

LAT

Living Apart Together, a relationship in which two people are in a committed relationship but choose to live separately.

Shared Confidences

The act of disclosing private or sensitive information between parties who trust each other.

Intimacy

The close, familiar, and usually affectionate or loving personal relationship with another person or group.