An Economic Model Includes

question 222

Multiple Choice

An economic model includes

• A) only normative statements.
• B) all known details in order to increase its accuracy.
• C) only details considered essential.
• D) no use of marginal concepts.

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Definitions:

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process over a defined period of time.

American Economy

The economic system of the United States, characterized by a mix of private and public enterprises and a relatively high level of technological innovation and productivity.

Savings Rate

The Savings Rate is a measure indicating the proportion of income that households save rather than spend on consumption.