Organize the Steps an Economist Would Follow in the Model-Building

question 35

Multiple Choice

Organize the steps an economist would follow in the model-building process into their proper order.
 - Use simplifying assumptions 
 - Develop a model
 - Collect data
 - Identify the problem
 - Formulate a conclusion

• A) 1. Develop a model. 2. Collect data. 3. Use simplifying assumptions. 4. Identify the problem. 5. Formulate a conclusion.
• B) 1. Use simplifying assumptions. 2. Collect data. 3. Develop a model. 4. Identify the problem. 5. Formulate a conclusion.
• C) 1. Identify the problem. 2. Develop a model. 3. Use simplifying assumptions. 4. Collect data. 5. Formulate a conclusion.
• D) 1. Formulate a conclusion. 2. Collect data. 3. Identify the problem. 4. Develop a model. 5. Use simplifying assumptions.

---

Definitions:

Total Fixed Cost

The aggregate of expenses that do not vary with changes in production levels or outputs.

Total Variable Cost

The total expenses that change in proportion to the production output or sales volume of a company.

Total Product

The overall quantity of output or goods produced by a firm or economy over a specific time period.