Which of the Following Statements About Economic Models Is True

question 1

Multiple Choice

Which of the following statements about economic models is true?

• A)There is only one correct economic model.
• B)All economic models are based on the same assumptions.
• C)The purpose of economic models is to show how endogenous variables affect exogenous variables.
• D)Economists use different models to address different questions.

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Definitions:

Incorporators

Individuals who sign the articles of incorporation and are involved in the legal process of forming a corporation.

Incorporation Statute

A law that governs the formation, operation, and dissolution of corporations, providing the legal framework for businesses to obtain corporate status.

De Facto Corporation

A corporation that operates like a legally incorporated company, despite not having completed all required incorporation steps, often recognized for legal purposes.

State Government

The government of a specific state in a federal system, responsible for local laws, policies, and management of state-specific issues.