What Is an Example of an Economic Model

question 143

Multiple Choice

What is an example of an economic model?

• A)Opportunity costs.
• B)Scarcity of resources.
• C)Positive statements.
• D)Production possibilities curve.

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Definitions:

Prices

The amount of money required to purchase goods or services, often determined by supply and demand dynamics.

Preferences

In economics, preferences refer to the ranking or order of different alternatives or goods based on their desirability by individuals or entities.

Motor Oil

A lubricant used in internal combustion engines to reduce wear on moving parts, clean, and cool the engine.

Gasoline

A volatile fuel used primarily in internal combustion engines.