An Economic Model Is a Representation of Economic Reality That

question 139

Multiple Choice

An economic model is a representation of economic reality that

• A) highlights all possible variables and the relationships among them.
• B) highlights particular variables and the relationships among them.
• C) predicts how government actions influence the private sector.
• D) illustrates the difference between economic and non-economic theories.
• E) focuses strictly on welfare economics.

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Definitions:

In-House Manufacture

The process of producing goods within a company, as opposed to outsourcing production to external suppliers.

Outsourcing

The strategic use of outside resources to perform activities traditionally handled by internal staff and resources.

Employer Contribution

Financial payments made by employers towards employee benefits, such as retirement plans, health insurance, and other perks.