In order to eliminate unnecessary details and highlight the essential features of an economic model,an economist makes
A) critical assumptions
B) macroeconomic assumptions
C) normative assumptions
D) positive assumptions
E) simplifying assumptions

Question

Quizplus · Accepted Answer

Simplifying assumptions are made by economists in order to simplify complex economic systems and models. These assumptions help to eliminate unnecessary details and highlight the essential features of the model. They are not necessarily normative or positive, and may not be macroeconomic in nature. Critical assumptions may be used in some cases, but simplifying assumptions are the most commonly used.

In Order to Eliminate Unnecessary Details and Highlight the Essential