When forming theories, economists must be careful to
A) include all known facts and details.
B) omit crucial factors.
C) mirror the real world as realistically but as simply as possible.
D) consider historical behavior and policies.
E) limit the analysis to two variables.

Question

Quizplus · Accepted Answer

Economists aim to create models that simplify reality to understand complex economic phenomena while maintaining enough realism to be useful.

When Forming Theories, Economists Must Be Careful to