An Economic Model

question 62

Multiple Choice

An economic model

• A) uses equations to understand normative economic phenomena
• B) often omits crucial elements
• C) simplifies reality in order to focus on crucial elements
• D) tries to make simple concepts more complex
• E) cannot be proven wrong

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Definitions:

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.