Assumptions for Economic Theories and Models Should Be

question 63

Multiple Choice

Assumptions for economic theories and models should be

• A)rejected if they are not totally realistic.
• B)logical rather than empirically testable.
• C)simple and reasonable rather than complex.
• D)maintained until overwhelming evidence to the contrary occurs.

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Definitions:

Company Stock

represents shares of ownership in a corporation, giving holders a claim on part of the company’s assets and earnings.

Configuration

The arrangement or set-up of components or elements in a particular form or structure.

Multinational Company

A corporation that operates in several countries but has its headquarters in one country, often involved in producing and selling goods or services in various markets.

Global Strategy

A business approach that considers the world as a single market, focusing on developing standardized products or services to achieve economies of scale.