Economists Develop Models to

question 35

Multiple Choice

Economists develop models to

• A) capture every detail of the real world.
• B) make their arguments more realistic.
• C) justify the assumptions they make about people's behavior.
• D) help us understand economic phenomena in the real world.

Understand the enforceability of contract clauses, including exclusions of liability and limitations on liability.

Explore theories for recovery when a contract is breached or terminated, including restitution.

Analyze the implications of failure to perform contracted service and the pursuit of damages.

Understand the legal processes involved in rescinding a contract and obtaining restitution.

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Definitions:

Liabilities Reporting

The process of disclosing a company's obligations and debts on its financial statements.

Revenues Test

A criterion used to assess whether revenues are being recognized in the correct accounting period under the accrual basis of accounting.

Operating Segment

A component of a business that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the organization's chief operating decision maker.

Separate Disclosures

Financial reporting that requires specific financial statements or items to be presented separately to provide clarity and detail.