Which of These Statements About Economic Models Is Correct

question 178

Multiple Choice

Which of these statements about economic models is correct?

• A)For economists,economic models provide insights about the world.
• B)Economic models are built with assumptions.
• C)Economic models are often composed of equations and diagrams.
• D)All of the above are correct.

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Definitions:

Comparative Advantage

Comparative advantage refers to the ability of an entity to produce a good or service at a lower opportunity cost compared to others.

Production

The process of creating goods or services by combining various resources like labor, materials, and technology.

Feasible Terms

Conditions or criteria that can be realistically achieved or met in a particular context or agreement.

Production Possibilities

The different combinations of goods and services that a society can produce given its available resources and technology.