The scientific purpose of simplifying assumptions in an economic model is to
A)avoid confronting difficult issues.
B)eliminate the need for further testing of the implications of the model.
C)abstract from the complexities of the real world those issues that are not important for the issues under examination.
D)eliminate the possibility of personal bias in the model.
E)add necessary hypotheses to the problem.

Question

Quizplus · Accepted Answer

Simplifying assumptions are used in economic models to make the analysis of real-world issues more manageable. These assumptions help to abstract from the complexities of the real world and focus on the essential elements of the problem being examined. This allows economists to isolate and study the relationships between variables and identify the key factors that drive economic outcomes. By making the model simpler, it becomes easier to compare the effects of different policies or scenarios, and to identify which factors are most important for explaining economic outcomes. Therefore, the scientific purpose of simplifying assumptions is to abstract from the complexities of the real world those issues that are not important for the issues under examination.

The Scientific Purpose of Simplifying Assumptions in an Economic Model