Economists Use Abstract Models Because

question 57

Multiple Choice

Economists use abstract models because:

• A)every economic situation is unique, so it is impossible to make generalizations.
• B)every economic situation is essentially the same, so specific details are unnecessary.
• C)they are useful for describing general patterns of behavior.
• D)computers have allowed economists to develop abstract models.

Identify the consequences of changes in factors other than the good's own price on supply and demand.

Understand how changes in the price of complementary and substitute goods affect demand.

Recognize the effects of income changes on the demand for normal and inferior goods.

Predict market outcomes (e.g., surplus, shortage) from given shifts in supply and/or demand.

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Definitions:

Harvesting Rice

The process of collecting ripe rice crops from the fields, a vital agricultural activity that occurs seasonally and involves manual and mechanized methods.

American War for Independence

The revolutionary war fought from 1775 to 1783 in which the Thirteen American Colonies won independence from British rule, leading to the formation of the United States of America.

Natchez

A city in Mississippi known for its rich history, particularly before and during the Civil War, including its role in the slave trade.

Black Louisianans

African American residents of Louisiana, with a rich cultural heritage that includes Creole and Cajun influences.