A theory or a model
A) is a simplified, abstract view of reality.
B) is based on each economist's value judgments.
C) is a detailed analysis of what ought to be.
D) captures all aspects of the real world.

Question

Quizplus · Accepted Answer

A theory or a model is a simplified, abstract view of reality. It is not expected to capture all aspects of the real world but rather provide an organized way of understanding a particular phenomenon. B is incorrect because the value judgments of individual economists may influence their theories, but they are not the basis of a theory or model. C is incorrect because a theory or model is not a detailed analysis of what ought to be, but rather an explanation of what is or what may be. D is incorrect because no theory or model can capture all aspects of the real world.

A Theory or a Model