Economic Models

question 47

Multiple Choice

Economic models

• A)are always based on realistic assumptions.
• B)usually predict perfectly.
• C)can never be tested with real-world data.
• D)are used to describe cause-and-effect relationships.
• E)are too simple to be of much use.

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Definitions:

Exact Amount

A specific, precise sum of money or measurement of quantity, with no deviation allowed.

Legal Tender

Currency that is officially recognized by a governmental authority as acceptable payment for debts.

Legal Tender

Currency that must be accepted if offered in payment of a debt, as decreed by a country's government.

Exact Tender

The requirement for a payment in the precise amount owed, without needing change.