Why do economists tend to create models in diagrammatic form?
A)Diagrams distort reality, and theory is an attempt to avoid reality.
B)Because they are unable to construct physical models of their theories.
C)Economic reality can only be represented in diagrams.
D)Most economists like to draw as much as possible.
E)All of these responses are correct.

Question

Quizplus · Accepted Answer

Economics deals with abstract concepts and relationships, and physical models are often difficult or impossible to construct. Diagrams allow economists to visualize and represent these concepts and relationships in a clear and concise manner. While diagrams may not capture all aspects of economic reality, they provide a useful tool for analyzing and communicating economic theories. Option A is incorrect because economic theory is not an attempt to avoid reality, but rather to understand and explain it. Option C is incorrect because economic reality can also be represented through mathematical equations, statistical analysis, and other methods. Option D is incorrect because personal preferences for drawing do not influence the choice of modeling technique.

Why Do Economists Tend to Create Models in Diagrammatic Form