he world in which we live is complex and to understand it, human beings make use of some or other simplification process. A theory can accordingly be seen as an attempt to simplify things. Such an observation may come as a surprise to those who have often heard remarks to the effect that such and such a theory is difficult, or at the least terribly complicated. We should nevertheless remind ourselves that a theory involves an attempt to simplify things – it is the world out there that is the complicated entity. A particular theory (or model) is merely trying to reduce it to manageable proportions, at least as far as understanding our environment is concerned.” In economics, theory is presented in a simple form by making the… 1.23 a) Post hoc assumption b) Fallacy of composition c) Ceteris paribus assumption d) Blinkered approach

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The world in which we live is complex and to understand it, human beings make use of some or
other simplification process. A theory can accordingly be seen as an attempt to simplify things.
Such an observation may come as a surprise to those who have often heard remarks to the effect
that such and such a theory is difficult, or at the least terribly complicated. We should nevertheless
remind ourselves that a theory involves an attempt to simplify things – it is the world out there that
is the complicated entity. A particular theory (or model) is merely trying to reduce it to manageable
proportions, at least as far as understanding our environment is concerned.”

In economics, theory is presented in a simple form by making the…
1.23
a) Post hoc assumption
b) Fallacy of composition
c) Ceteris paribus assumption
d) Blinkered approach

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