A Model Is Used to Explain Economic Behavior

question 50

Multiple Choice

A model is used to explain economic behavior. Therefore

• A)the assumptions must be complex while the model itself is simple.
• B)the model must be complex.
• C)the model must be simple.
• D)the model can be either simple or complex so long as it explains economic behavior.

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Definitions:

Division Of Labor

The breaking down of work into a number of separate tasks to be performed by different workers, increasing efficiency and productivity.

Hierarchy Of Authority

A system of organization where entities are ranked according to levels of power and control, from highest to lowest.

Mechanistic And Organic

Describes two contrasting organizational structures; mechanistic being highly structured and hierarchical, organic being more flexible and adaptable.

Authority Structure

The framework that delineates the lines of authority, communication, and responsibility within an organization.