In constructing models, economists
A) make simplifying assumptions.
B) include all available information.
C) must use mathematical equations.
D) attempt to duplicate the real world.

Question

Quizplus · Accepted Answer

Economists make simplifying assumptions when constructing models in order to make the models more manageable and easier to understand. It is not always possible or necessary to include all available information or duplicate the real world. While mathematical equations are often used, they are not an absolute requirement for constructing models in economics.

In Constructing Models, Economists