A Good Economic Model

question 54

Multiple Choice

A good economic model

• A)does not include more than two variables.
• B)includes only those features of the world that are needed for the purpose at hand.
• C)describes all aspects of the economic world.
• D)includes only features of the world that can be described numerically.
• E)includes more than two variables but less than 10 variables.

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Definitions:

Amortize Intangible Assets

The process of systematically reducing the recorded cost of intangible assets over their useful life or legal life, whichever is shorter.

Useful Lives

The estimated time period that an asset is expected to be used by a business, contributing to its revenue generation.

R&D Costs

Expenses associated with the research and development of a company's goods or services, which may include labor, materials, and overhead related to the creation and improvement of products or services.

Indirect Costs

Costs that are not directly traceable to a specific project, product, or activity, typically including overheads like administration and utilities.