Economists Use Models To

question 56

Multiple Choice

Economists use models to:

• A) abstract from the complexities of the world.
• B) understand economic behavior.
• C) explain and help predict human behavior.
• D) do all of the above.

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Definitions:

Depreciable Cost

The expense of a fixed asset reduced by its salvage value, indicating the entire sum that can be depreciated throughout the asset's lifespan.

Book Value

The value of an asset as it appears on a balance sheet, calculated as the cost of the asset minus any depreciation.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Disposed

Refers to the act of selling, transferring, or getting rid of an asset or property owned by an individual or company.