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All Economic Models Must Involve Simplifications Because

Question 105

Multiple Choice

All economic models must involve simplifications because:


A) economists would be unable to command high salaries if their models were too simple.
B) human behavior is very erratic and unpredictable.
C) reality is too complex to understand in its entirety, so we must reduce the complexity to a level that we can understand.
D) economists try to cover all the possible variables.
E) we must ignore complexity.

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