The use of economic models means economists believe that:
A) this is how people explicitly choose between alternatives.
B) this is a reasonable abstraction of how people choose between alternatives.
C) those who explicitly make decisions this way are smarter.
D) with enough education, all people will start to explicitly make decisions this way.

Question

Quizplus · Accepted Answer

Economic models are simplifications or abstractions of reality that economists use to understand how people make choices. They do not necessarily reflect the exact way individuals make decisions but provide a framework for analyzing decision-making processes.

The Use of Economic Models Means Economists Believe That