Economic Models

question 22

Multiple Choice

Economic models

• A)are different from the phenomena they attempt to explain.
• B)are new phenomena because they are by-products of experimental economics.
• C)are not complicated because the behavior they describe is not complicated.
• D)are complicated because human behavior is complicated.
• E)would not be needed if controlled experiments were used more often.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Debts Discharged

The cancellation of a debtor's obligation to pay a debt after fulfilling certain conditions, often under bankruptcy procedures.

Technically Insolvent

A financial state where an entity's liabilities exceed its assets, but it has not yet declared bankruptcy.

Bankruptcy Relief

Legal procedures designed to help individuals or businesses that cannot pay their debts to either eliminate those debts or repay them under the protection of bankruptcy court.