Economic Models Cannot Take the Form of

question 247

Multiple Choice

Economic models cannot take the form of

• A)equations.
• B)words.
• C)graphs.
• D)actual duplication of observed conditions.

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Definitions:

Net Benefit

The total benefits of a decision or action, subtracting any associated costs, reflecting the overall value or payoff.

Equitable Distribution

The fair and just allocation or distribution of resources among members of a society.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate to make any individual or preference criterion better off without making at least one individual or preference criterion worse off.

Potentially Efficient

A situation or system that has the capacity to achieve efficiency but has not yet achieved it.