Economic analysis:
A)involves some simplifications of reality.
B)is only vaguely related to reality because if it did so coincide, it would not still be theory.
C)is impossible, because of the impossibility of a controlled experiment.
D)if it is good theory, involves no simplification of reality.
E)involves so much distortion of reality as to be worthless.

Question

Quizplus · Accepted Answer

Economic analysis involves simplifications of reality in order to make complex economic phenomena more understandable and manageable. These simplifications may involve making assumptions or using models that don't perfectly reflect the real world, but are still useful for making predictions and informing economic policies.

Economic Analysis