Which of the Following Statements Is FALSE

question 186

Multiple Choice

Which of the following statements is FALSE?

• A)Economists empirically test their models.
• B)Economic models are not used to forecast.
• C)An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied.
• D)Economic models relate to behavior rather than to individual thought processes.

---

Definitions:

Limited Liability

A legal structure that protects business owners' personal assets from company debts and liabilities.

Competitive Business Conditions

The dynamic and challenging environment in which businesses operate, characterized by competition over customers, market share, and innovation.

Decision-Making Process

A series of steps a person or organization goes through to weigh the pros and cons of different options and choose the best course of action.