Why do economists need to develop abstractions?
A) to avoid analyzing real-world economic interactions, which are too complicated to understand
B) to understand and explain economic behaviour
C) to avoid committing the fallacy of composition
D) to distinguish normative economic behaviour from positive economic behaviour

Question

Quizplus · Accepted Answer

Economists develop abstractions in order to better understand and explain economic behavior. Abstractions allow economists to simplify real-world economic interactions, making them easier to analyze and comprehend. This can ultimately lead to the development of more accurate economic theories and models.

Why Do Economists Need to Develop Abstractions