Economists Use Models in Order to

question 249

Multiple Choice

Economists use models in order to

• A)get around having to deal with actual facts.
• B)understand real-life events and predict outcomes.
• C)avoid having to use theories to understand economic conditions.
• D)help elect political candidates.

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Definitions:

Value Chain Management

The process of organizing all activities involved in creating and delivering a product or service to maximize value and competitive advantage.

Input-through-output Process

A method or procedure in which inputs are transformed into outputs through a series of steps or activities, often in a production or operational context.

Inventory Control

The supervision of supply, storage, and accessibility of items to ensure an adequate supply without excessive oversupply.

Economic Order Quantity

A formula used in supply chain management to determine the optimal order size that minimizes the sum of ordering and holding costs.