Economic Models Are

question 98

Multiple Choice

Economic models are

• A)always based on laboratory methods similar to natural sciences.
• B)a simplified representations of the real world.
• C)used only in microeconomic analysis by households.
• D)used only in macroeconomic analysis by business firms.

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Definitions:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Investee

denotes an entity in which another entity holds an interest, typically through investment.

Subsidiary

A company that is controlled by another company, typically referred to as the parent company, through ownership of more than half of its voting stock.