Answered step by step
Verified Expert Solution
Question
1 Approved Answer
All economic models must involve simplifications because: a . reality is too complex to understand in its entirety, so we must reduce the complexity to
All economic models must involve simplifications because:
a reality is too complex to understand in its entirety, so we must reduce the complexity to a level that we can understand.
b economists would be unable to command high salaries if their models were so simple that anyone could understand them.
c they always try to duplicate all possible information and cover all possible variables that might influence decision making.
d we must rely on value judgments and ignore reality.
e human behavior is very erratic and unpredictable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started