Economic Models

question 175

Multiple Choice

Economic models

• A)are not useful because they omit many real-world details.
• B)are usually composed of diagrams and equations.
• C)are useful because they do not omit any real-world details.
• D)are usually plastic representations of the economy.

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the number of finished units those in-process items represent.

Motion Pictures

A category of visual art form that uses moving images to tell stories or convey information, often accompanied by sound.

Process Cost System

An accounting system used to track costs in industries where production is continuous and processes are uniform, assigning costs to units of output.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units of output.