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
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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