A Theory Is an Abstraction Used Often by Economists to

question 16

Multiple Choice

A theory is an abstraction used often by economists to

• A)describe a problem.
• B)keep all assumptions in their proper places.
• C)explain why things work the way they do.
• D)describe a hierarchical ordering of facts.
• E)arrange variables into a graphical format.

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Definitions:

Decision Variables

The variables in a mathematical model that decision makers will seek to determine or control.

Optimal Values

The most favorable or efficient values that lead to the best outcome in a given situation or model.

Fabrication Labor Constraint

A limitation in the manufacturing process related to the amount of labor available for fabricating products.

Right-hand Sides

In linear programming, these are the values on the right side of the equation, representing the constraints or limits of the resources.