conomic models are typically based on the notion that people behave rationally. However, people do not always
ehave rationally.
Which statement is NOT a reason why economists consider their models valid, although people sometime behave
irrationally?
People typically behave more rationally over time.
Despite their flaws, these models generally predict market behavior well.
For the sake of simplicity, it is easier to create models based on generalizations rather than seemingly random or
irrational behavior.
The existing models have been in place for so long that they are considered untouchable, the equivalent of
economic law.
