To abstract from reality in an economic model means that:

Question

Quizplus · Accepted Answer

To abstract from reality in an economic model means to simplify reality by including only essential aspects relevant to the model, while leaving out non-essential or less important aspects. This allows for a clearer understanding of the relationships between variables in the model and enables predictions about how changes in one variable may affect others. The other options are incorrect because including all aspects of reality (A) may not be necessary or feasible; surveying only a limited period of time (B) does not necessarily imply abstraction from reality; including only elements that support a hypothesis (C) is biased and violates scientific integrity; and the model including some non-important aspect of the real world (D) would actually be less abstract and more realistic.

To Abstract from Reality in an Economic Model Means That