Most Economic Models

question 74

Multiple Choice

Most economic models

• A)incorporate the assumption of rational behavior on the part of economic actors.
• B)incorporate the notion that people are usually reluctant to change their minds.
• C)are meant to precisely duplicate reality.
• D)assume that people often make sub-optimal choices.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Inventory

The goods and materials a business holds for the purpose of resale or production.

Freight-in

The cost of transporting goods into a firm, usually considered part of the inventory cost.

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.