What do economists always do when they are constructing theories or models?
A)They make simplifying assumptions.
B)They attempt to duplicate the real world.
C)They ensure that the theory can be expressed mathematically.
D)They try to include as much information as possible.

Question

Quizplus · Accepted Answer

Economists always make simplifying assumptions when constructing theories or models as it allows them to isolate the relationship between variables and focus on the most important factors. This helps to make the theory or model more manageable and easier to understand.

What Do Economists Always Do When They Are Constructing Theories