In constructing models, economists
A) consider all factors that can change.
B) include all available information.
C) attempt to duplicate the real world.
D) make simplifying assumptions.

Question

Quizplus · Accepted Answer

Economists make simplifying assumptions when constructing models as it is impossible to consider every little detail and variable in real-world situations. These simplifications help to create a more manageable and understandable model for analysis.

In Constructing Models, Economists