A Useful Economic Model

question 111

Multiple Choice

A useful economic model

• A)deals only with possibilities that actually occurred.
• B)makes only realistic assumptions.
• C)may make some unrealistic assumptions in order to simplify a complex reality.
• D)should avoid drawing conclusions that have public policy implications, since economics is not equipped to make value judgments.

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Definitions:

Egalitarian Principle

A philosophical doctrine emphasizing equality in rights and opportunities among people.

Market-based Approach

An economic strategy that relies on market forces such as supply and demand to address issues and allocate resources.

Socialized Approach

A method or practice where resources are owned, managed, and provided by the community as a whole or by a government, often emphasizing universal access to goods and services.

Single-payer Approach

A healthcare system where a single public or quasi-public agency organizes health care financing, but delivery of care remains largely private.