Which Statement Does NOT Describe Model Building in Economics

question 201

Multiple Choice

Which statement does NOT describe model building in economics?

• A) Models are developed to cover specific behaviors only.
• B) Models are created and then tested.
• C) Models are used to help understand the general economy.
• D) Assumptions are used to analyze an economic issue.

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Definitions:

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.

Profit Center Income Statement

A financial report that measures the profitability of a particular segment, department, or division within a company, distinguishing it from other areas of the business.

Revenues and Expenses

Revenues refer to the money generated from normal business operations while expenses are the costs incurred to generate those revenues.

Purchase Requisitions

Formal requests made within an organization to procure goods or services.