Which of the Following Is Not Correct About Most Economic

question 63

Multiple Choice

Which of the following is not correct about most economic models?

• A)They are composed of equations and diagrams.
• B)They contribute very little to economists' understanding of the real world.
• C)They omit many features of the real-world economy.
• D)In constructing models,economists make assumptions.

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Definitions:

Process

A series of actions or steps taken in order to achieve a particular end in business or manufacturing.

Job Order

A work instruction or order for producing a specific quantity of a product or service according to customer specifications.

Conversion Cost

The combined costs of direct labor and manufacturing overheads associated with converting raw materials into finished products.

Direct Labor

The labor cost of workers who are directly involved in the manufacture of products or the provision of services.