Economic problems are analyzed using stylized models that are
A) as detailed as possible.
B) based on recent case studies.
C) very complex and mathematical.
D) simplified by using assumptions.

Question

Quizplus · Accepted Answer

Economic problems are often very complex and difficult to analyze. Economists use stylized models that are simplified by using assumptions to make these problems more manageable. While economists strive to make these models as accurate and realistic as possible while still being useful, they are inherently simplified versions of reality.

Economic Problems Are Analyzed Using Stylized Models That Are