Multiple Choice
When specifying economic models, economists often make assumptions about the real world. The purpose of assumptions in economics is to:
A) make the model more realistic.
B) simplify the model and provide a primary focus for the theory.
C) ensure that the model only covers specific conditions.
D) guarantee the accuracy of the theory.
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Deflation describes periods when:<br>A) the average level
Q51: The solution to the equations P =
Q52: Why are simple models so important to
Q53: A table titled "Commodity Price Index, 1950-1998
Q54: Which one of the following steps does
Q56: All of the following statements are correct
Q57: Time series data:<br>A) are used very infrequently
Q58: Data that follow the same individuals over
Q59: When economists compute the real value of
Q60: Human behaviour, as well as the behaviour