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.

---

Definitions:

Emotional State

The current condition of a person’s emotions or feelings which can affect perception, behavior, and physical responses.

Personal Characteristics

Traits or attributes that define an individual's personality and behavior.

Organic Brain Damage

Physical damage to the brain's structure that can affect cognitive, emotional, and physical functions, often resulting from injury or illness.

Dichotomy Corollary

A principle related to Kelly's personal construct theory, suggesting that we use bipolar dimensions to construct our view of the world.