An Economic Model

question 195

Multiple Choice

An economic model:

• A) omits critical elements.
• B) must be presented in mathematical terms.
• C) is used to make predictions about the real world.
• D) can never be proven wrong if its assumptions are realistic.
• E) produces poor predictions if it includes assumptions.

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Definitions:

Majority

More than half of a group or quantity, often used to describe the greater part or number in a community or collection of items.

Disaffirm

To reject, refuse to accept, or declare a contract void, often used in the context of minors’ capacity to enter into contracts.

Necessary

Essential or required for a particular purpose, without which the objective cannot be achieved.

Ratification

The action of signing or giving formal consent to a treaty, contract, or agreement, making it officially valid.