To Be Valid, an Economic Model Must

question 83

Multiple Choice

To be valid, an economic model must:

• A) include every activity which occurs in the real world.
• B) include at least 85 percent of the activity which occurs in the real world.
• C) be able to predict events occurring in the real world.
• D) exclude any link to the real world.
• E) not be based on an abstraction of the real world.

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Definitions:

Partner's Liability

The legal responsibility of a partner in a partnership for the debts and obligations of the partnership.

Torts

Legal wrongs committed by one party against another, leading to civil legal liability and compensation claims, not arising from contractual obligations.

Course Of The Business

The usual dealings and functions of a business within its chosen industry.

Contractual Relationship

A legally binding connection between two or more parties defined by a mutual agreement and enforceable by law.