To abstract from reality in an economic model means that:
A) we include only a few of the essential aspects of reality.
B) the economic study surveys only a very limited period of time.
C) we include only those elements which support our hypothesis.
D) the model includes every aspect of the real world.

Question

Quizplus · Accepted Answer

To abstract from reality in an economic model means that we simplify the real world by including only a few essential aspects that are necessary for the model's analysis or hypothesis. It is not possible or practical to include every aspect of the real world in an economic model.

To Abstract from Reality in an Economic Model Means That