Choose the Answer That Best Explains Why Economists Build Models

question 63

Multiple Choice

Choose the answer that best explains why economists build models that abstract from the complexities of reality.

• A)Because economists are not interested in reality.
• B)Because economics deals only in the abstract.
• C)Because the complexities of reality are unimportant.
• D)Because this allows economists to conduct controlled experiments to test their theories.
• E)Because they believe they gain a greater understanding of reality.

Understand the concept of eustress and its significance in achieving positive work outcomes.

Analyze the importance of need for achievement, affiliation, and power in driving individual behavior.

Differentiate between Theory X and Theory Y management styles and their implications for employee motivation.

Assess the impact of equity theory on employee motivation and behavior in the organization.

---

Definitions:

Supply Chain Manager

An expert in charge of supervising and directing the strategy and operations of a corporation's supply chain and logistics.

Replenishment Cycle

The recurring process of restocking sold-out or used products in inventory to maintain a desired stock level.

ESC (Expected Shortage per Cycle)

A metric used in inventory management forecasting the expected stockout quantity for a given inventory cycle, aiding in optimization and planning.

Safety Inventories

Stock that is maintained to buffer against uncertainties in demand or supply, ensuring product availability.