The Assumptions That Form the Basis of Any Economic Model

question 47

Multiple Choice

The assumptions that form the basis of any economic model are referred to as:

• A) theorems.
• B) precepts.
• C) building blocks.
• D) objectives.

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Definitions:

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other things.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, or the attention and curiosity about a topic.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Three-step Writing Process

A structured approach to writing that includes planning, drafting, and revising to enhance clarity and effectiveness.