Economists make simplifying assumptions to
A) understand extremely complex phenomenon.
B) build a model that is as close to the real world as possible.
C) focus on the variables that are important to an economic theory.
D) A and C

Question

Quizplus · Accepted Answer

Economists make simplifying assumptions to understand extremely complex phenomenon and to focus on the variables that are important to an economic theory. They do not necessarily aim to build a model that is as close to the real world as possible, as this can be nearly impossible.

Economists Make Simplifying Assumptions to