Economic Models

question 47

Multiple Choice

Economic models

• A)are always based on realistic assumptions.
• B)usually predict perfectly.
• C)can never be tested with real-world data.
• D)are used to describe cause-and-effect relationships.
• E)are too simple to be of much use.

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Definitions:

Customer

An individual or organization that purchases goods or services from a business, often considered the centerpiece of marketing and sales strategies.

Close the Sale

The final step in the sales process where a seller successfully convinces a buyer to make a purchase.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as labor and materials.

Annual Fixed Cost

Fixed costs that a business incurs over a year regardless of its activity level, such as rent, salaries, or insurance.