An economic model that contains a highly realistic set of assumptions is
A)certainly superior to a model whose assumptions are highly unrealistic.
B)more abstract than a model whose assumptions are further removed from reality.
C)useful because there is then very little difference between "theory" and "reality."
D)necessarily better able to predict the future.
E)not likely to be useful because of its particularized nature and its complexity.

Question

Quizplus · Accepted Answer

Highly realistic models can become too complex and particularized, making them less useful for general application and understanding.

An Economic Model That Contains a Highly Realistic Set of Assumptions