The Ultimate Purpose of an Economic Model Is to

question 99

Multiple Choice

The ultimate purpose of an economic model is to

• A) explain reality as completely as possible
• B) establish assumptions that closely resemble reality
• C) help us understand economic behavior
• D) determine what each decision maker wants to maximize
• E) guide government policy decisions

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Definitions:

Achievement Motivation

The drive that propels individuals to strive for success, mastery, and to overcome obstacles.

Delayed Gratification

The skill to avoid succumbing to immediate pleasure, opting instead for a delayed but potentially greater reward.

Snake Wine

A traditional beverage in some Asian cultures, made by infusing whole snakes in rice wine or grain alcohol, believed to have healing properties.

Cultural Influences

The impact of cultural environment and practices on an individual's behaviors, values, and beliefs.