When Constructing an Economic Model,economists

question 130

Multiple Choice

When constructing an economic model,economists:

• A)rely mostly on their own value judgments and ignore the far more complex world of facts.
• B)always try to duplicate reality by including all available information.
• C)use assumptions that are true for the individual but never true for the whole economy.
• D)must rely on assumptions for the sake of simplification.
• E)are primarily concerned with making realistic assumptions.

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Definitions:

Marketing Perspective

An approach to business focusing on understanding and satisfying the needs and wants of customers through market research and strategic promotion.

Customer Relationship Management

A strategy for managing an organization's interactions with current and future customers, using data analysis about customers' history with a company to improve business relationships.

Stockout

A situation where inventory is exhausted and items are unavailable for sale or use, often resulting in lost sales or delays.

Back Order

An order for a product that cannot be filled at the current time due to a lack of available stock, to be fulfilled once the item becomes available.