The role of an assumption in an economic theory is to
A) add realism.
B) prove the theory.
C) cover special cases.
D) simplify the complex reality.

Question

Quizplus · Accepted Answer

Assumptions are necessary to simplify complex realities, making economic theories easier to understand, analyze, and apply. While assumptions may not always reflect the complete reality, they allow for the development of useful economic models that can guide decision-making and policy.

The Role of an Assumption in an Economic Theory Is