Economists need to develop abstractions in order to:
A)avoid analyzing real-world economic interactions, which are too complicated to understand.
B)distinguish normative economic behavior from positive economic behavior.
C)avoid committing the fallacy of composition.
D)understand and explain economic behavior.

Question

Economists need to develop abstractions in order to:
A)​avoid analyzing real-world economic interactions, which are too complicated to understand.
B)​distinguish normative economic behavior from positive economic behavior.
C)​avoid committing the fallacy of composition.
D)​understand and explain economic behavior.

Quizplus · Accepted Answer

Economists develop abstractions in order to understand and explain economic behavior, which means they are developing generalized theories and models to explain how the world works. These abstractions can then be used to analyze real-world economic interactions. Option A is incorrect because economists use abstractions to analyze real-world economic interactions, rather than avoid them. Option B is incorrect because abstractions are not necessary for distinguishing normative and positive economic behavior. Option C is incorrect because abstractions are not necessary for avoiding the fallacy of composition, although they may be helpful in understanding it.

Economists Need to Develop Abstractions in Order To