Why do economists abstract, and is it appropriate?
Economists (and other scientists) abstract in order to be able to focus on key variables. It is appropriate, because the economy is very complex; trying to keep track of everything is extremely difficult. Thus, economists focus on relevant variables and ignore those that are less relevant to the problem at hand. Abstraction allows focus on the forest instead of the trees.
You might also like to view...
Economic freedom is a precondition for economic growth. Which of the following is a characteristic of economic freedom? i. A democratic form of government ii. Property rights must be protected. iii
The government must support and pay for inventions and innovations. A) i only B) ii only C) Both i and ii D) Both ii and iii E) Both i and iii
An economic good must be
a. useful. b. scarce. c. transferable. d. All of these.
In the long run, holding all else constant, inflation requires a decrease in the money supply relative to the output of goods and services—not enough money chasing too many goods
Indicate whether the statement is true or false
In differentiating between the short-run and long-run elasticities for the same good, when economists talk about short-run elasticities,
a. they cannot distinguish between the two types b. there is no differentiation if it's the same good c. they are the same as long-run elasticities for the same good d. they are usually higher than long-run elasticities e. they are usually lower than long-run elasticities