What can good assumptions do?

Question

Quizplus · Accepted Answer

Good assumptions can simplify the complex world and make it easier to understand, rather than further complicating an already difficult topic. They allow economists to develop theories and models that are useful in explaining real-world phenomena and making predictions about future outcomes. While it is possible for economists to leave out important variables when making assumptions, this is not necessarily a result of good assumptions but rather a failure to carefully consider all relevant factors. Good assumptions should help economists to see the 'big picture' and understand the relationships between different variables in the economy.

What Can Good Assumptions Do