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

Question

Quizplus · Accepted Answer

A highly realistic economic model may become too complex and specific, making it difficult to apply broadly or to derive general insights, thus reducing its usefulness.

An Economic Model That Contains a Highly Realistic Set of Assumptions