The models that economists construct:
A)usually make simplifying assumptions.
B)often rely on physical constructs, such as those used by architects.
C)rarely use mathematical equations or graphs.
D)attempt to replicate the real world.

Question

Quizplus · Accepted Answer

Economists construct models to simplify complex economic relationships and phenomena. These models often make assumptions, such as assuming that consumers always act rationally or that markets are perfectly competitive. These assumptions allow for easier analysis and understanding of economic concepts, but they may not fully replicate the complexities of the real world.

The Models That Economists Construct