One Problem with Constructing a Perfectly Complete Realistic Economic Model

question 9

Multiple Choice

One problem with constructing a perfectly complete realistic economic model is that

• A)it would be too simplistic to have any value.
• B)it would be far too complicated to analyze.
• C)politicians see little value in such a model.
• D)None of the above is true.

---

Definitions:

Capital Formation

The process of building up the physical and financial assets of an economy for the production of goods and services.

Manufacturing

The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.

Services

Intangible products such as accounting, banking, cleaning, consultancy, education, insurance, expertise, medical treatment, or transportation.

Brain Drain

Refers to the emigration of highly skilled or qualified people from a particular country or region to another, often for better pay or conditions.