In constructing models,economists:

A) make simplifying assumptions.
B) include all available information.
C) must use mathematical equations.
D) attempt to duplicate the real world.

Constructing Models

The process of creating representations of real-world phenomena in order to test theories, predict outcomes, and analyze scenarios.

Simplifying Assumptions

Basic assumptions made to make complex economic models more understandable and manageable by ignoring certain factors.

Mathematical Equations

Symbolic representations of relationships between variables or quantities, defined by mathematical operations.