You want to make a model showing how people decide to decorate their houses and lawns. You assume that homeowners follow the art idea of the "Golden Ratio" to decide where one item should be in relation to another. In reality, the homeowners have never heard of the "Golden Ratio," but the predictions made by your model are still very close to how things end up decorated. An economist would say your model O is not ideal due to the lack of realism O is effective as long as the homeowners learn to use the Golden Ratio in decorating as a result of your study O is effective because economics focuses on predictions from models, not the assumptions used to create them O is not ideal because it does not look sufficiently like the real world

You want to make a model showing how people decide to decorate their houses and lawns. You assume that homeowners follow the art idea of the "Golden Ratio" to decide where one item should be in relation to another. In reality, the homeowners have never heard of the "Golden Ratio," but the predictions made by your model are still very close to how things end up decorated. An economist would say your model O is not ideal due to the lack of realism O is effective as long as the homeowners learn to use the Golden Ratio in decorating as a result of your study O is effective because economics focuses on predictions from models, not the assumptions used to create them O is not ideal because it does not look sufficiently like the real world

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 19QP

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