Economic Models Generally

question 108

Multiple Choice

Economic models generally:

• A) focus on all important aspects of economic reality.
• B) reflect certain value judgments, since they must focus on certain aspects of economic reality and not on others.
• C) do not involve value judgments because they are purely mathematical.
• D) are close representations of real-world economic reality.

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Definitions:

Estimating Mean Value

The process of calculating the average value of a set of numbers or measurements.

Predicting Individual Value

The process of estimating the monetary or intrinsic value of a specific entity or individual based on relevant parameters.

Coefficient of Determination

is a statistical measure that explains the proportion of variance in the dependent variable predictable from the independent variable(s).

API Gravity Degrees

A measurement system used to determine the density of petroleum liquids compared to water.