An Economic Model Can Be Defined as

question 147

Multiple Choice

An economic model can be defined as

• A)a testable claim that can be evaluated with proper data.
• B)a representation of a theory or a part of a theory.
• C)another word for theory.
• D)a method to distinguish correlation from causation.
• E)All of these responses are correct.

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Definitions:

Available-for-sale Debt Investment

Debt securities not classified as held-to-maturity or trading securities, and can be sold in the short-term for liquidity purposes.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged in a current transaction between informed, willing parties.

Income Statement

A financial report detailing a company's revenues, expenses, and net income over a specific accounting period, showing its operating performance.

Available-for-sale Security

A financial instrument held by a firm not classified as held-for-trading or held-to-maturity, and thus can be sold before maturity.