Asked by Jaleel Joshua on Jul 02, 2024
Verified
The principle that irrelevant detail should not be included in a model is known as
A) a fallacy.
B) ceteris paribus.
C) Ockham's razor.
D) normative economics.
Ockham's Razor
A principle suggesting that the simplest explanation is usually the correct one, often applied in various fields to eliminate unnecessary assumptions.
Ceteris Paribus
A Latin term that translates to "with all other conditions remaining the same," employed in economics to focus on the impact of changing a single variable.
Normative Economics
A branch of economics that examines the desirability of certain aspects of the economy, focusing on what should be rather than what is.
- Recognize the implications of assuming all else equal in economic models.
Verified Answer
MI
Muniba Irshad7 days ago
Final Answer :
C
Explanation :
Ockham's razor is a principle that suggests the simplest explanation is usually the correct one, which aligns with the idea of not including irrelevant detail in a model.
Learning Objectives
- Recognize the implications of assuming all else equal in economic models.