A Good Economic Model

question 409

Multiple Choice

A good economic model

• A) describes every aspect of the economic world, with no exception.
• B) includes all those features of the world that can be described numerically.
• C) includes only those features of the world that are needed for the purpose at hand.
• D) should not include more than two variables.

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Definitions:

World Price

The global market price of a product or service, set by worldwide demand and supply.

Import or Export

The act of bringing goods or services into a country (imports) or selling goods or services to another country (exports).

World Price

The global market price of a commodity or a good that is traded internationally, affected by factors like supply, demand, and international trade policies.

Domestic Consumers

Inhabitants or domestic groups in a country buying items and services for private use.