A Theoretical Model Is

question 58

Multiple Choice

A theoretical model is

• A) a made-up explanation.
• B) a detailed description in terms of known physical laws or theories.
• C) a testable assumption.
• D) a scientific law.
• E) a detailed computer simulation.

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Definitions:

Trade Surplus

The result when a country engaged in trade exports more than it imports, also called positive trade balance.

International Product Life Cycle

A theory suggesting that a product's sales and popularity will vary in different international markets through various stages of its life cycle.

Maturity Phase

The stage in a product's lifecycle or a company's growth where sales growth slows or stabilizes as the market becomes saturated.

Capital Intensity

The amount of fixed or real capital present in relation to other factors of production, particularly labor.