Economists make assumptions because
A)they need to incorporate value judgments into their models.
B)analysis without assumptions would be impossibly complex.
C)they always have imperfect information about reality.
D)assumptions are the final product of careful economic analysis.
E)assumptions allow economists to ignore things that they cannot explain.

Question

Quizplus · Accepted Answer

Economists make assumptions because analysis without assumptions would be impossibly complex. Assumptions simplify analysis and allow economists to isolate and study the effects of individual variables in their models. However, it is important for economists to choose their assumptions carefully and be transparent about them in order to avoid biased or flawed conclusions.

Economists Make Assumptions Because