Economic Models Differ from Those in the Physical Sciences Because

question 123

Multiple Choice

Economic models differ from those in the physical sciences because

• A)they are usually more difficult than models in the physical sciences.
• B)economics has nothing to do with anything physical.
• C)they are less difficult than those in the physical sciences.
• D)they attempt to explain human behavior.
• E)economics relies on controlled experiments.

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Definitions:

Initial Cost

The initial expense of acquiring an asset, including purchase price, setup, and preparation costs.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated to depreciation expense since the asset was put into use.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).

Initial Cost

The purchase price or construction cost of an asset or investment, not accounting for depreciation or amortization.