Theory in economics
A)involves some simplification of reality
B)bears no relation to reality
C)approaches reality in all its complexity
D)involves so much distortion of reality that it is worthless
E)focuses on the unique aspects of each situation

Question

Quizplus · Accepted Answer

Economics as a social science deals with complex real-world economic problems. However, in order to study such problems, economists use theoretical models that involve some degree of simplification or abstraction. These models are meant to simplify the reality in order to make it more comprehensible and analyzable. Therefore, choice A is the best answer.

Theory in Economics