In Constructing Models, Economists

question 387

Multiple Choice

In constructing models, economists

• A) make simplifying assumptions.
• B) include all available information.
• C) must use mathematical equations.
• D) attempt to duplicate the real world.

Apply the matching concept in accounting for product warranties.

Understand the calculation and meaning of financial ratios, specifically the quick ratio.

Analyze installment note payments and their effects on a company's financial statements.

Distinguish between different payroll items and their implications on employee and employer financial responsibilities.

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Definitions:

Verbal Phrase

A phrase that expresses an action or a state of being, often used in math to translate words into algebraic expressions.

Algebraic Expression

A mathematical phrase that can contain ordinary numbers, variables, and operators, but does not have an equals sign.

Difference

The result of subtracting one number from another.

Algebraic Expression

An expression built up from integer constants, variables, and the algebraic operations (such as addition, subtraction, multiplication, and division).