When economists construct economic models,
A) all but the essential features of the environment are eliminated.
B) all the essential features of the environment are eliminated.
C) only mathematical equations are used.
D) every detail found in reality must be included.

Question

Quizplus · Accepted Answer

When economists construct economic models, they simplify the real world by eliminating non-essential features and focusing on the most important factors that drive the behavior of the system. This simplification allows economists to create clear and concise models that can be analyzed using mathematical tools. However, it is important to note that the selected features and assumptions made in the model must be carefully chosen to ensure that the model accurately reflects the behavior of the real-world system being studied.

When Economists Construct Economic Models