Economists Use a Model That Is a Literal Description of Business

question 209

True/False

Economists use a model that is a literal description of business' behavior.

---

Definitions:

Gold Mine

A site for extraction of gold ore or minerals from the ground with the objective of producing gold through mining operations.

Inflation

The velocity at which the cost of goods and services universally goes up, reducing the buying power.

Elasticity Measures

refer to the quantitative analysis of changes in economic variables in response to changes in other variables, such as price or income.

Income Elasticity

A measure of how the demand for a good changes in response to a change in consumers' income.