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An Economic Model That Contains a Highly Realistic Set of Assumptions

Question 63

Multiple Choice

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 somewhat 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.

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