Economists Use Models To

question 193

Multiple Choice

Economists use models to:

• A) abstract from the complexities of the world.
• B) understand economic behavior.
• C) explain and help predict human behavior.
• D) do all of these.

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Definitions:

Notes Payable

Liabilities represented by written promises to pay a specified sum of money, usually with interest, by a certain date.

Notes Payable

A written agreement where the borrower promises to pay back a specified sum to the lender by a certain date.

Interest Expense

The amount a company has to spend over time for taking out loans.

Sales Taxes Payable

This account reflects the amount of sales tax collected from customers by a company on behalf of state and local governments, which is to be remitted to those governments.