Consider an Economic Model Designed to Analyze the Behavior of Business

question 111

Multiple Choice

Consider an economic model designed to analyze the behavior of business firms.An assumption that the goal of the firms is to maximize profit would be

• A) a simplifying assumption
• B) a critical assumption
• C) an abstraction from reality
• D) an unnecessary detail
• E) irrelevant to the conclusions of the model

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Definitions:

Weiner's Model

A theory of motivation and emotion in psychology that categorizes the causes of success and failure along dimensions of stability, locus of control, and controllability.

External-Unstable

An attributional style where an individual believes that the cause of events is due to changeable, external factors.

Outgroup

A social group to which an individual does not identify or belong, often seen as fundamentally different or apart from one's in-group.

Ingroup

A social group to which an individual feels they belong, often leading to favoritism towards group members and discrimination against those not in the group.