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:

Universal Condition

Refers to circumstances or factors that are applicable or prevalent universally, regardless of local or individual variations.

Dissatisfaction

A feeling of unhappiness or discontentment due to unmet expectations or needs.

Transcendent

Independent of. In the philosophy of religion, a transcendent God is one who is distinct and separate from the universe he created. This is contrasted with the concept of an immanent God, for example, in pantheism, where God is identical with his creation, or, to take a different example, in certain forms of humanism, in which God is identical with humankind. (G. W. F. Hegel argued such a thesis.)

Existence

Refers to the state or fact of being real or living, or of being present in a particular situation or under specific conditions.