The Importance of an Economic Model Is That It Allows

question 163

Multiple Choice

The importance of an economic model is that it allows us to:

• A)build a complex and accurate model of how the economy should work.
• B)build an accurate mathematical model of every aspect of the economy.
• C)focus on the effects of only one change at a time.
• D)avoid opportunity costs.

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Inventory Cost Flow Assumption

A method used in accounting to determine the cost of goods sold and ending inventory value, examples include FIFO, LIFO, and average cost methods.