Economists Use Models in Order To

question 27

Multiple Choice

Economists use models in order to:

• A)develop insights into how the economy works
• B)develop insights into mathematical theorems
• C)make economics hard for students to understand
• D)help businesses decide what investments will be profitable

Examine the impact of third-party beneficiaries of warranties and contractual obligations.

Understand and calculate percentage increases and decreases.

Calculate the direct comparison between past and current values to determine financial changes.

Apply the concept of unit price changes to real-world problems.

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Definitions:

Outsourcing

The business practice of hiring parties outside a company to perform services or create goods that traditionally were performed in-house.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to being government controlled.

Public Sector

The public sector comprises government-run organizations, agencies, and companies, providing services like education, healthcare, and infrastructure to the public.

Insourcing

The practice of performing business functions or services within a company using its own staff and resources, as opposed to outsourcing.