A simplifying assumption
A) affects the important conclusions of an economic model
B) increases the level of detail in an economic model
C) makes an economic model a more concrete representation of reality
D) eliminates unnecessary details from an economic model
E) limits the validity of an economic model's conclusions

Question

Quizplus · Accepted Answer

A simplifying assumption is used to eliminate unnecessary details from an economic model, which helps to simplify the model and make it more manageable to analyze. This does not necessarily affect the important conclusions of the model, although it may limit the model's validity in certain situations. However, it does not increase the level of detail or make the model a more concrete representation of reality.

A Simplifying Assumption