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Nicole Changli
on Nov 25, 2024

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Neoclassical economic models make simplifying assumptions about people's rationality and preferences for the following reasons, except

A) these assumptions make the models mathematically elegant.
B) these assumptions allow the models to be conveniently solved mathematically.
C) these assumptions allow the models to generate quite precise predictions of behavior.
D) these assumptions allow the models to generate quite accurate predictions of behavior.

Simplifying Assumptions

Basic conditions that modelers set to make complex economic analyses more manageable and understandable.

Rationality

The quality of being based on or in accordance with reason or logic; often involves making decisions that are optimal based on available information.

Neoclassical Economic Models

These models are based on the assumptions of rational behavior and efficient markets, focusing on how supply and demand determine prices and allocate resources.

  • Gain insight into the underlying disparities between neoclassical and behavioral economics.
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Mohamed RafatDec 01, 2024
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