Understanding Economic Assumptions and Decision-making

The main focus of economics is the allocation of scarce resources.

Economists use economic models to help predict the behavior of variables and explain the cause of certain events.

Assumptions in economics are beliefs that economists make about the behavior of individuals, even though they may not have definite proof.

<p>Something is irrational if it is not based on clear thought or reason.</p> Signup and view all the answers

<p>Variables in economics are factors that affect a situation in a way that makes it uncertain what will happen.</p> Signup and view all the answers