The purpose of making assumptions in economic model building is to
A)force the model to yield the correct answer.
B)minimize the amount of work an economist must do.
C)simplify the model while keeping important details.
D)express the relationship mathematically.

Question

Quizplus · Accepted Answer

The purpose of making assumptions in economic model building is to simplify the model while keeping important details. This allows economists to understand and analyze complex economic relationships in a manageable way. While assumptions may not always perfectly reflect real-world situations, they can provide valuable insights and predictions.

The Purpose of Making Assumptions in Economic Model Building Is