Why Do Economists Use Models

question 93

Multiple Choice

Why do economists use models?  

• A) to make their profession appear more precise 
• B) to make economics accessible to the public 
• C) to learn how the economy works 
• D) to make sure that all the details of the economy are included in their analysis

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Definitions:

Information Tax Return

A document that reports income, expenses, and other pertinent tax information, typically filed with a governmental tax authority.

Accounting Entity

A clearly defined economic unit that isolates the financial activities of a specific business from those of its owners and other businesses.

Articles of Co-partnership

A legal document that specifies the rights, responsibilities, and obligations of partners in a partnership business.

Oral Agreements

Contracts or agreements that are made through spoken communication rather than in writing, though their legal enforceability can vary.