Asked by
Chastyn Perysh Reyna
on Oct 26, 2024
Verified
Because models make simplifying assumptions,they are of very little use in the real world.
Simplifying Assumptions
Basic assumptions made in economic models to eliminate complex factors and make analysis more manageable, even if they might not fully hold in the real world.
- Realize the significance of economic models and their employment in assessing real-world situations.
- Fathom the importance of underlying assumptions in the development of economic models and their probable limitations.
Verified Answer
MS
Learning Objectives
- Realize the significance of economic models and their employment in assessing real-world situations.
- Fathom the importance of underlying assumptions in the development of economic models and their probable limitations.
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