Which of the Following Correctly Describes a Deterministic Economic Model

question 33

Multiple Choice

Which of the following correctly describes a deterministic economic model?

• A)A deterministic model is a model for which the outcome is predicted with certainty.
• B)A deterministic model can only be used to explain short-run economic phenomena.
• C)A deterministic model is used to study economic variables in the presence of asymmetric information.
• D)A deterministic model is used in the study of normative economics.
• E)The outcome of a deterministic model is random and has probabilities attached.

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Definitions:

Regressive Taxes

Tax systems in which the tax rate decreases as the taxable amount (income or expenditure) increases, placing a higher relative burden on lower-income earners.

Lower-Income Canadians

Canadians who earn income significantly below the national average, placing them in the lower economic strata of society.

Tax Credits

Financial incentives or reductions in tax payments provided by governments to encourage certain behaviors or to aid taxpayers in specific situations.

Rate Of Poverty

The proportion of the population living below the poverty line, reflecting the economic condition where individuals lack sufficient income to meet minimal standards of living.