An economic model that contains a highly realistic set of assumptions is
A)useful because there is then very little difference between "theory" and "reality."
B)necessarily better able to predict the future.
C)certainly superior to a model whose assumptions are highly unrealistic.
D)more abstract than a model whose assumptions are further removed from reality.
E)not likely to be useful because of its particularized nature and its complexity.

Question

Quizplus · Accepted Answer

A highly realistic model may become too complex and specific, making it less useful for general application and understanding, as it may not capture the broader principles or be easily adaptable to different situations.

An Economic Model That Contains a Highly Realistic Set of Assumptions