Which of These Statements About Economic Models Is Correct

question 178

Multiple Choice

Which of these statements about economic models is correct?

• A)For economists,economic models provide insights about the world.
• B)Economic models are built with assumptions.
• C)Economic models are often composed of equations and diagrams.
• D)All of the above are correct.

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Definitions:

Raw Materials

The basic, unprocessed resources or inputs used in the production of goods and services.

Labour

The human workforce involved in productive work, especially physical work, in an economy or for a specific project or company.

Profit Margins

measure the difference between the cost of producing a product or service and its selling price, expressed as a percentage of the sales price.

Maximum Amounts

The highest permissible or possible quantities or levels of something.