SOLVED

67) In constructing models, economists A) include all independent variables. B) include all available information. C) attempt to duplicate the real world. D) make simplifying assumptions. 68) In building a model to analyze economic situations, one of the important assumptions is A) ceteris paribus. B) scarcity. C) conversion abstraction. D) cognitive dissonance. 69) Assumptions are necessary to A) make economics a social science. B) define a set of circumstances where a model is most likely to apply. C) define the relationship between wants and resources under all circumstances. D) define the specific cause and effect relationship that is being explained by social sciences. 70) Ceteris paribus means A) all men are created equal. B) wage parity between men and women is a worthy goal. C) there are an infinite number of factors affecting each human decision and they change all the time. D) economists isolate one or two factors that change when analyzing human decisions. 71) Economic models are used to A) simplify reality to predict outcomes. B) exactly replicate reality. C) predict all possible outcomes of a study. D) determine the thoughts of individuals. 72) Economic models A) should be designed so as to capture every detail or interrelationship that exists. B) are simplified representations of the real world. C) must employ the use of laboratory methods. D) All of the above are correct. 73) Economics may be referred to as a(n) ________ science, meaning that data is looked at to see whether assertions are correct. A) empirical B) exact C) assumptive D) soft 74) The term ceteris paribus is an economic assumption that means A) let the buyer beware. B) common sense is reality. C) the detail is in the interrelationship. D) other things being equal. 75) The value of a model is determined by A) the usefulness of its predictions in the real world. B) the extent of the profit earned by applying it. C) the realism of its assumptions. D) the model’s attention to real world details. 76) Assumptions in models tend to make A) the model predict what the scientist wants the results to be. B) the model more realistic. C) the model more applicable to specific circumstances. D